Michael Dell's plan to take his computer company Dell Inc. private may hinge in part on whether he's able to exploit one of the company's most valuable assets: as much as $14.2 billion of cash and bonds outside the U.S.
Like many of the world's largest technology companies, Dell has legally avoided billions of dollars in income taxes by attributing profits to overseas subsidiaries in tax havens. Bringing the cash back to the U.S. to finance the buyout would risk subjecting the money to the 35 percent corporate income tax rate, with a credit for any foreign income tax they've already paid.
"You can be sure the buyout team is looking at the most effective way that asset can be used. They're spending hours and hours on this," said Antony Page, a professor at Indiana University's Robert H. McKinney School of Law and a former mergers and acquisitions lawyer. "There may be loopholes in there that sophisticated tax lawyers can find that aren't immediately obvious."
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
