Apple may see up to $47 billion removed from its tax bill if Republicans continue with their current (and very controversial) tax reform plan, according to Fortune. This would make the tech giant the biggest beneficiary of the legislation that’s currently before Congress.
According to the Financial Times this is the result of the reduced tax rate that would be applied to foreign earnings under the Republicans’ proposed reform. The Republican proposals for reform calls for taxing past accumulated earnings at rates of no more than 14.5%, regardless of whether or not the money is returned home. Apple calculates it would be liable for $78.6 billion in taxes if its earnings were brought back under the current regime, according to the FT.
Richard Harvey, a tax professor at Villanova University who has testified before the Senate on Apple’s tax affairs, says the Senate version of the tax bill would require the Cupertino, California-based company to pay $31.4 billion on its past earnings; that’s a full $47 billion below what it would pay today if it repatriated, notes Fortune. Apple’s foreign cash and investments come to $252 billion, according to ratings agency Moody’s.