Everyone\’s favourite retired accountant tells us about Dell, their taxation and the notes to their accounts concerning it. He asks the important question.
5) If the company you were investing in reported lower taxes because of the mix of jurisdictions in which income was generated, but you knew that its home state rate would eventually have to be paid if you as a stockholder were to catch sight of that income as a dividend what would you think of its intention to make payment to you as an investor?
Not a lot actually. Dell doesn\’t pay a dividend.