Apple moves cash to Braeburn spin-off in Nevada

Posted on 7 Apr 2006 at 11:12

Apple has established a separate company to handle its expanding cash reserves of $8.7bn at the last count, Business Week reports.

The company, called Braeburn after a particular variety of apples, has been set up in Nevada in order to take advantage of the lower taxes in that state compared to Apple's home state of California.

Nevada has no corporate income tax, no capital-gains tax, and the state doesn't share information with the US Internal Revenue Service, Neal Chambers, a corporate attorney with the firm of Bullivant Houser Bailey in Las Vegas, told Business Week. California, by contrast, collects corporate income, capital gains, and franchise taxes.

Quite what Apple will do with the cash pile is anyone's guess. A few years ago it made a spate of acquisitions which added several high-end video tools and the Logic virtual music studio to its software portfolio, but has been quiet on that front since, aside from the purchase of SchemaSoft last year.

It will inevitably face calls from shareholders to hand some of the cash over; it has not paid a divided since 1995, in other words since Steve Jobs rejoined the company.

Author: Simon Aughton

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