Are eBay Inc (EBAY), Apple Inc. (AAPL), and General Motors Company (GM) the Next Face of a Tax Inversion Deal?

Since eBay Inc (NASDAQ:EBAY), Apple Inc. (NASDAQ:AAPL) and General Motors Company (NYSE:GM) pay a huge percentage of their income to Uncle Sam, 75.3%, 61% and 161.5% respectively, are they also looking to land themselves another one of those tax inversion deals? Forbes‘ Maggie Grafth reported on a study by the personal finance website, WalletHub, which tackled the tax mystery of S&P 100 companies in the context of their annual financial results for 2013.


Odysseas Papadimitriou, who is WalletHub’s CEO, was faced with the question that are these companies also looking for a tax inversion deal in light of their high tax rates at home? He was quoted by Forbes as saying, “There has been so much focus on this type of deal that I’m not sure it’s smart for any company to try a tax inversion deal at this point, because I think it’s only a matter of time before the federal government finds a way to get back that lost revenue.”

Papadimitriou also explained why some of the companies in the study have a tax rate of more than 100% such as General Motors Company (NYSE:GM) and some a negative rate as well. He said that it is the result of special onetime charges that some of these companies like General Motors Company (NYSE:GM) had in their annual reports.

Another, interesting analysis of the study revolved around tech companies like Apple Inc. (NASDAQ:AAPL) and eBay Inc (NASDAQ:EBAY). The disparity in taxes that Apple Inc. (NASDAQ:AAPL) and eBay Inc (NASDAQ:EBAY) paid at home and abroad was alarming. eBay Inc (NASDAQ:EBAY) paid an overseas tax rate of 5.7% which is only a fraction of the 75.3% that it pays at home. Similarly the overseas number for Apple Inc. (NASDAQ:AAPL) stood at 3.7%.

General Motors Company (NYSE:GM) and eBay Inc (NASDAQ:EBAY) were also the top two companies on the high tax list that WalletHub drew.

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