Here’s How Apple Avoids Paying $59.2 Billion in Taxes

taxdodgeIt’s no secret that U.S. companies like Apple hide their cash stockpiles in overseas accounts to avoid domestic taxation, but as that amount grows, so should citizens’ fury over how they’re left to foot the bill that massive corporations aren’t paying their fair share of.

Cost information website HowMuch.net recently took a look at offshore assets of several major U.S. companies, and what it found was striking (click the image below for a full version).

howmuch-apple-offshore-cash

Apple, for example, now boasts a massive $181.1 billion trove of cash overseas, which is up $70 billion from last year. What’s really infuriating is how much deferred tax revenue that equates to. As HowMuch notes, AAPL is able to keep a potential $59.2 billion taxes away from the government by parking it internationally. That’s a huge budget shortfall that naturally is picked up by ordinary citizens instead. From HowMuch:

Big Business plays by different rules than the average Mom and Pop stores that dot the country, forming the backbone of the economy. Many multinational corporations use their global reach, and a fair degree of high-tech accounting, to shift their assets, profits –and taxes due– to so-called offshore tax havens. These countries have minimal corporation tax rates, drastically reducing the amount of tax these multinationals have to pay.

As the chart above illustrates, Apple isn’t the only offender, but it is the worst one. Overall, Fortune 500 companies may be avoiding more than $620 billion in potential U.S. tax revenue overseas.

Uncle Sam is cracking down a bit on big business, however. Today, Facebook announced it might owe the IRS $5 billion. It’s a start, but ultimately that’s just a drop in the bucket of the massive total.

Apple Inc. (NASDAQ:AAPL) shares fell $0.33 (-0.32%) to $104.00 in Friday morning trading. The stock has fallen 1.1% year-to-date, but has bounced solidly off its yearly lows to the tune of 16% since mid-May.

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