Tax avoidance

US corporate giants hoarding more than a trillion dollars

Moody’s report says 72% of the money held by Apple, Google and other American companies is being parked offshore for tax reasons

Some of the biggest US companies have accumulated cash piles worth almost $1.7tn (£1.1tn) – more than two thirds of it overseas.

According to the calculations by ratings agency Moody’s, the five companies hoarding the most cash – Apple, Microsoft, Google, Cisco and Oracle – between them held $504bn by the end of last year. The tech sector held 46% of the total.

Apple – described as the “cash king” by the ratings agency – held $216bn of cash, more than double the $102bn held by the next largest hoarder, Microsoft.

The figures will add to the controversy about companies sitting on cash as the data shows they are parking it offshore to avoid the tax bill that would be due on returning it to the US.

An estimated $1.2tn of cash was held overseas at the end of 2015 – about 72% of the $1.68tn cash stockpile, Moody’s said. Of the five big hoarders of cash, three –Apple, Microsoft and Cisco – keep more than 90% outside the US.