If you borrow the money to buy back your stock and to pay dividends and bonuses it is tax deductible. If you sell product and make profits and then buy back stock and pay dividends, it is taxable. Which would you do?
The interest payments on the bonds will be tax-deductible. All of
this works out nicely for Apple shareholders. Ordinary Americans can
only dream of being able to enjoy such wondrous tax efficiency.
As Floyd Norris of the New York Times wrote in a column
about a year ago: "Isn't that nice of the government? Borrow money to
avoid paying taxes, and reduce your tax bill even further." He also
posed this question: "Could this become the incident that brings on
public outrage over our inequitable corporate tax system?"Considering that Apple is about to do another $17 billion bond deal of this sort, it would seem we have an answer: No.
Why No Outrage Over Apple's Big Bond Deal? - Bloomberg View