It's not often that Apple fails to get its way. But chalk this up as one of those rare occasions.
As it turns out, Apple has aggressively pushed for Washington to allow a tax holiday on overseas profits - something the Obama Administration has consistently been opposed to.
Just yesterday, after announcing that the company would devote some $45 billion of its $100 billion cash pile to pay dividends and buy back shares in the coming years, Apple also said it will keep $64 billion in cash "offshore" - as in, not in the United States of America.
"Repatriating the cash from offshore would result in significant tax consequences under current U.S. law," Apple's Chief Financial Officer Peter Oppenheimer said on Monday during a conference call with members of the media. "We think that the current tax laws provide a considerable economic disincentive to U.S. companies that might otherwise repatriate the substantial amount of foreign cash that they have."
Currently, if Apple brings the money back into the United States it would be taxed at the standard corporate rate of 35 percent. Apple has joined other corporations, including Google, Cisco and Pfizer, in seeking a repatriation holiday that would slash the tax rate on profits broad back from abroad.
Source: International Business Times