Apple (AAPL) Lower After NYT Hit-Piece

April 30, 2012 9:56 AM EDT
Apple (Nasdaq: AAPL) is weak early Monday which could be related to a weekend New York Times hit-piece showing how the company is avoiding paying billions in taxes.

The article discusses how Apple set up offices in Reno, Nevada to avoid paying taxes in California and 20 other states. Nevada has a zero percent tax rate.

In addition to Nevada, Apple has subsidiaries in other low-tax places like Ireland, the Netherlands, Luxembourg and the British Virgin Islands.

While every corporation tries to cut taxes, Apple savings are substantial since the comapny's profits are so large (the company could earn $45.6B this fiscal year).

In a statement to the Times on the matter, the company said it "has conducted all of its business with the highest of ethical standards, complying with applicable laws and accounting rules." In the first half of fiscal year 2012, the company said its U.S. operations have generated almost $5 billion in federal and state income taxes.

Shares of Apple last traded at $592.74, down 1.7%.

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NYT HIt Piece
duane d. gayanelo on 2012-04-30 10:58:03
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Does the NYT realize that Aapl reports consolidated financial reports? And that at best only 36% of the total is earned here in the United States? It seems as if the NYT is no better than the National Enquirer, after all the NYT was also responsible for allegations of child labor which turned out to be totally unfounded and unsubstantiated.

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