ACT 520 CSU Global Module 6 Apple US and Global Regulators Case Study Questions

Options #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 (Links to an external site.) and then answer the following requirements:

  1. In your own words, describe:
    1. What is Apple attempting to achieve?
    2. How is it possible that Apple, as a U.S. company, does not pay the regular corporate tax rate?
  2. Provide examples and comments in which Apple has been criticized for not paying appropriate taxes in other foreign countries in which it conducts business.
  3. 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.
  4. Provide:
    1. article citations;
    2. a description of techniques used; and
    3. a description of criticism the company may receive from foreign governments.
  5. ASC 740-30-25 covers the topic of undistributed earnings of subsidiaries and corporate joint ventures.
    1. In your opinion, how does ASC 740-30-25 provide incentive to U.S. multinational corporations to shift or keep profits offshore?
    2. How can this financial accounting standard be used as a tool for earnings management?
    3. What evidence exists that corporate tax executives favor the Indefinite Reversal Exemption?


Holttzblatt, M. A., Geekie, J., Tschakert, N. (2016). Should U.S. and global regulators take a bigger tax bite out of technology companies? A case on apple’s international tax minimization and reporting strategies. Issues in Accounting Education, 31(1), 133-148.

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