Ritchie picks up on a piece in the New York Times:
Without such tactics, Apple’s federal tax bill in the United States most likely would have been $2.4 billion higher last year, according to a recent study by a former Treasury Department economist, Martin A. Sullivan. As it stands, the company paid cash taxes of $3.3 billion around the world on its reported profits of $34.2 billion last year, a tax rate of 9.8 percent.
It\’s amusing that the country\’s leading tax expert doesn\’t pick up on the important point about that statement. Apple\’s 9.8% tax rate is entirely mind gargling nonsense.
US Corporation tax is paid a year in arrears. Thus the $3.3 billion cash taxes paid this year refers to the profits from the previous year.
And what do we know about Apple\’s profits recently? Yup, they\’ve been rising very strongly, haven\’t they?
And what that 9.8% tax rate, cash taxes paid on last year\’s profits when compared to this year\’s profits is that profits at Apple are growing very fast.
It\’s an interesting thing for the country\’s leading tax expert to miss, isn\’t it? Almost as if he doesn\’t know the subject upon which he is pontificating.