[leopoldo]

As a U.S. citizen who has lived abroad, all expats have to report and pay back their taxes to the U.S. Given, there's a bigger exemption (I don't remember the exact number, but you start paying taxes at 40-50K).

So I agree, Apple as an American company should pay taxes on the money it makes abroad. And again, I would vouch for a larger tax break, but still pay on their income abroad - as expats do.

[graeme]

The US is the only country which does this though. From an outsiders perspective, it seems unreasonable. The rules have become significantly harsher in recent years. Banks may avoid dealing with Americans, and there is a lot of paperwork to prove you owe zero.