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Apple could save another $4 billion, in theory, under Republican tax loophole

Luke Stangel
American City Business Journals

Republicans who rushed the biggest corporate tax overhaul in decades inadvertently created a loophole that could allow Apple to save as much as $4 billion on its tax bill, experts say. The “potential loophole” only applies to companies whose fiscal year starts before Jan. 1, like Apple, Cisco Systems and Microsoft Corp., and shuts out other companies whose fiscal years follow the calendar year, like Google parent Alphabet, according to Harvard Law School professor Stephen Shay, Reuters reports . The Republican tax overhaul allows companies to repatriate foreign cash and other, less liquid assets, back into the U.S. under two different tax rates: cash, at a 15.5 percent rate, and illiquid assets at an 8 percent rate.