# What prevents Apple from buying back their stock overseas with foreign profits? **URL:** \ **Category:** Factual Questions\ **Created:** [May 21, 2013, 3:19pm UTC](https://boards.straightdope.com/t/what-prevents-apple-from-buying-back-their-stock-overseas-with-foreign-profits/658935 "2013-05-21T15:19:06Z")\ **Posts on this page:** 6\ **Page:** 1
**Author:** ![Linden\_Arden](https://avatars.discourse-cdn.com/v4/letter/l/53a042/32.png) [@Linden\_Arden](https://boards.straightdope.com/u/Linden_Arden)\ **Post date:** [May 21, 2013, 3:19pm UTC](https://boards.straightdope.com/t/what-prevents-apple-from-buying-back-their-stock-overseas-with-foreign-profits/658935/1 "2013-05-21T15:19:06Z")
1- Apple’s CEO is being grilled by Congress today. 2- They don’t want to repatriate foreign profits. 3- They recently initiated a large share buyback. So why not buy back stock using the foreign proceeds and avoid US taxes? Certainly a broker in London or Hong Kong would fill the order. ---
**Author:** ![smiling\_bandit](https://avatars.discourse-cdn.com/v4/letter/s/e9a140/32.png) [@smiling\_bandit](https://boards.straightdope.com/u/smiling_bandit)\ **Post date:** [May 21, 2013, 3:50pm UTC](https://boards.straightdope.com/t/what-prevents-apple-from-buying-back-their-stock-overseas-with-foreign-profits/658935/2 "2013-05-21T15:50:27Z")
The stock would then be held by an overseas entity. ---
**Author:** ![Darth\_Panda](https://avatars.discourse-cdn.com/v4/letter/d/ee7513/32.png) [@Darth\_Panda](https://boards.straightdope.com/u/Darth_Panda)\ **Post date:** [May 22, 2013, 1:21pm UTC](https://boards.straightdope.com/t/what-prevents-apple-from-buying-back-their-stock-overseas-with-foreign-profits/658935/3 "2013-05-22T13:21:05Z")
I thought this was interesting and might be of use to the company I work at, so I emailed our VP of Tax about it. He wrote back and indicated that it would be against US tax law. He didn’t provide a cite 🙂 but he’s the head of tax at a Fortune 500 Company, so he probably knows what he’s talking about. ---
**Author:** ![robert\_columbia](https://avatars.discourse-cdn.com/v4/letter/r/e79b87/32.png) [@robert\_columbia](https://boards.straightdope.com/u/robert_columbia)\ **Post date:** [May 22, 2013, 4:46pm UTC](https://boards.straightdope.com/t/what-prevents-apple-from-buying-back-their-stock-overseas-with-foreign-profits/658935/4 "2013-05-22T16:46:44Z")
> [@Darth\_Panda](#): > > I thought this was interesting and might be of use to the company I work at, so I emailed our VP of Tax about it. He wrote back and indicated that it would be against US tax law. He didn’t provide a cite 🙂 but he’s the head of tax at a Fortune 500 Company, so he probably knows what he’s talking about. I heard it from the VP of Tax at a Fortune 500 company, it must be true. ---
**Author:** ![Darth\_Panda](https://avatars.discourse-cdn.com/v4/letter/d/ee7513/32.png) [@Darth\_Panda](https://boards.straightdope.com/u/Darth_Panda)\ **Post date:** [May 22, 2013, 4:56pm UTC](https://boards.straightdope.com/t/what-prevents-apple-from-buying-back-their-stock-overseas-with-foreign-profits/658935/5 "2013-05-22T16:56:50Z")
> [@robert\_columbia](#): > > I heard it from the VP of Tax at a Fortune 500 company, it must be true. You’re right, I apologize for going out of my way to email an expert about a quesiton that a stranger asked me. Your own contribution was much more helpful. ---
**Author:** ![Colibri](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/colibri/32/1841_2.png) [@Colibri](https://boards.straightdope.com/u/Colibri)\ **Post date:** [May 22, 2013, 5:18pm UTC](https://boards.straightdope.com/t/what-prevents-apple-from-buying-back-their-stock-overseas-with-foreign-profits/658935/6 "2013-05-22T17:18:18Z")
> [@robert\_columbia](#): > > I heard it from the VP of Tax at a Fortune 500 company, it must be true. > [@Darth\_Panda](#): > > Your own contribution was much more helpful. **Moderator Note** **robert\_columbia** and **Darth Panda** , let’s drop the snark. No warning issued. Colibri General Questions Moderator