Quite Amazing About Apple\’s Corporate Income Tax Rate: It\’s 70%

Do you remember when everyone started spluttering that Apple only paid a 9.8% rate in corporate income tax?

Amazingly, if you do exactly the same calculation, in exactly the same manner, on this quarter\’s results, Apple\’s corporate income tax rate was 70% this quarter.

We will, of course, now have everyone who trumpeted the very low rate explaining how this very high rate isn\’t important because it\’s not a good method of calculating the tax rate. Which is entirely true.

But it didn\’t stop them last time did it?

Update: And of course I\’ve managed to get this quite gloriously wrong. Ho hum.

5 thoughts on “Quite Amazing About Apple\’s Corporate Income Tax Rate: It\’s 70%”

  1. Um, no it’s not, its consistently about 26%

    The cash taxes paid at the bottom of the cash flow statement relates to a 12 month period. The pretax earnings figure relates to a 3 month period.

    Tim ads: You’re right. I did get that gloriously wrong, didn’t I?

  2. At least Tim apologies and publically admits his mistakes, unlike some other accountants who try their darnest to not accept that they ever make a mistake, and when forced at gunpoint to do so, blame it one someone else or do a mealy mouthed half apology stating that they are still right in principle.

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