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Technology Stocks : Apple Inc.
AAPL 274.11-1.5%Dec 15 3:59 PM EST
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To: Ryan Bartholomew who wrote (175903)10/15/2014 10:24:53 AM
From: HerbVic1 Recommendation

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Moonray

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I think the bigger assumption is yours. Ireland isn't going to suddenly go to a normalized tax rate. Read this from the article you posted.

The impact on companies' profits will be reduced by a new scheme announced by Noonan under which profits linked to the exploitation of patents will attract lower tax rates. Britain already has such a scheme, under which profits linked even tangentially to a patent can face a tax rate of 10 percent.

The Netherlands' " innovation box" scheme applies a tax rate of just 5 percent, although the eligible profits are more restricted than under the British regime, tax advisers say.

Kevin McLoughlin, tax adviser with consultants EY said the new patent tax regime "will allow Ireland to continue to compete effectively for international investment".

reuters.com

There are a lot of if's here, so any speculation has a high margin for error. But, if Apple is currently paying ~3.5% and that goes to 5%, and if the $12B tax avoidance is a comparison against a 29% US tax, then Apple is likely to lose .059% of its $12B, or roughly about $706 million.

That's .29 - .035 = 0.255 and

.05 - .035 = .015 and

.015 / .255 = .059
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