Apple to make overseas disclosures to SEC

Tech giant to reveal information about taxes and foreign cash

Apple is an 800-pound gorilla of the tech world, and its footprint stretches all over the world. Now, after a review by the Securities and Exchange Commission (SEC), the tech company will disclose more information about its international dealings.

After Apple’s April 2012 financial statement, the SEC demanded additional disclosures, including information about risk associated with Apple’s tax structure. In particular, it is looking for information on tax rates in foreign nations where Apple keeps its cash and information on the company’s foreign investments.

The CFO of Apple feels that the company has released sufficient information and does not feel its tax structure represents a risk. The company asked for and received confidential treatment for much of its strategic information, and the SEC completed its review in September. It is likely that there will be no further action, and the tech giant has agreed to be cooperative in these matters in the future.

Apple has been involved in a number of legal matters recently. It has faced many patent related suits all over the world, including clashes with Google and others. In fact, Apple is the company that is most targeted by non-practicing entities, also known as patent trolls.

With great success comes great responsibility and, while fighting off these patent disputes, Apple must take care not to run afoul of the SEC, as that organization is a bad enemy to have. Disclosing this information and cooperating with all of these matters will keep the government on Apple’s side and allow the tech giant to continue its business of innovating – and fighting off the trolls.

Contributing Author

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Rich Steeves

Richard P. Steeves is Managing Editor of InsideCounsel magazine, where he covers the intellectual property and compliance arenas. Rich earned a B.A. in English Literature...

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