Option #1: A Case Study on Apple: Should U.S. and Global
Regulators Take a Bigger Tax Bite Out of Technology Companies?
Read the attached case study and then answer the
following requirements:
- In
your own words, describe: - What
is Apple attempting to achieve? - How
is it possible that Apple, as a U.S. company, does not pay the regular
corporate tax rate? - Provide
examples and comments in which Apple has been criticized for not paying
appropriate taxes in other foreign countries in which it conducts
business. - The
case and Senate Subcommittee hearings mention that other technology
companies are using tax minimization techniques similar to Apple. Identify
one other global company that engages in similar tax minimization
strategies. - Provide:
- article
citations; - a
description of techniques used; and - a
description of criticism the company may receive from foreign
governments. - ASC
740-30-25 covers the topic of undistributed earnings of subsidiaries and
corporate joint ventures. - In
your opinion, how does ASC 740-30-25 provide incentive to U.S.
multinational corporations to shift or keep profits offshore? - How
can this financial accounting standard be used as a tool for earnings
management? - What
evidence exists that corporate tax executives favor the Indefinite
Reversal Exemption?
·
Copy and paste each question into your paper
in bold type (Questions are to be single-spaced) to ensure you have
answered each of the Assignment Requirements.