Apple Inc recently made news for issuing $17 billion in corporate bonds in the US, a placement which it says will fund share buybacks and dividend payouts to stakeholders.

Many have been wondering why a company like Apple - which has over $145 billion in cash on its books - is tapping the capital market to fund these operations. The company's real motives likely stem from the tax burden it faces in its home country.

Even though its vaults are over-flowing with cash, Apple's records show that some 70 percent of its money is held offshore, beyond the reach of tax collectors in the US, which has among the highest business taxes in the developed world.

Rather than transfer its overseas cash back into the US, the company will raise the money it needs in the bond market. By doing so, the company will only be paying a 1.81 percent yield on its bonds, well below the US's 35 percent corporate tax rate.

The author is Wang Huayu, a partner with Yingke Law Firm.