Apple said to have avoided a potential $9bn tax bill by using the proceeds from its $17bn bond issue to pay shareholders instead of bringing back $100b cash stashed abroad.
According to lawyers and accountants, the US based technology firm would have paid about 35% in tax to retain the amount into the US.
In addition, the move would also allow the firm to save around $100m per year through the use of debt instead of straight cash.
Upon borrowing the amount from the corporate bond market for $310m per year in interest payments, Apple is also expected to regain about a third of the amount over tax deductions.
The bond offering includes bonds maturing from 3 to 30 years, mainly with fixed rates through Deutsche Bank and Goldman Sachs.
Apple’s tax saving comes in the midst of increasing anger among policy makers about how multinational groups deal with their tax affairs.
The fund raising comes amid Apple’s promise to return $100bn to shareholders over the next three years as part of its efforts to soothe investors annoyed at the declining share price.
Apple reported 11% rise in its revenue to $43.6bn during the second quarter of 2013, with its net profit declining to $9.5bn.
