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Tim Cook: Apple Pays its Taxes

May 20th, 2013 - 2:39 pm

The Apple CEO released a statement — how unJobs-like! — before his Senate testimony:

For Apple’s current fiscal year, the company plans to pay more than $7 billion in taxes to the U.S. Treasury.

The testimony also argues that Apple does not use so-called “tax gimmicks.” Specifically, Apple has said it does not:

Move its intellectual property into offshore tax havens and use it to sell products back into the U.S. in order to avoid U.S. tax.
Use revolving loans from foreign subsidiaries to fund its domestic operations.
Hold money on a Caribbean island
Have a bank account in the Cayman Islands.

The justification for Apple’s “substantial foreign cash,” as the company put it, is because the majority of its products are sold outside of the U.S. The iPhone maker’s international operations accounted for 61 percent of its revenue last year, and increased to two-thirds of its revenue last quarter.

Cook will also testify to the need for tac reform to make it more desirable to repatriate foreign-earned capital back to the United States.

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All Comments   (4)
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God bless Apple. Apple doesn't benefit from being in America, why should they pay for anything? Next time they go looking for justice in the courts (Samsung anyone?), tell them to go to Ireland. Its past time for all the hippies, freaks and Subaru drivers to stop worshiping at the alter of St. Steve Jobs. Take our money? Pay our taxes!
48 weeks ago
48 weeks ago Link To Comment
This grandstanding is only to help drive the narrative that corporations = evil. Anyone with common sense can see this is a bunch of money grabbing politicians that are criticizing a corporation for legally using the tax law those same Congressmen helped put in place.

But the goal isn't to appeal to people with common sense because there aren't many. It's easy to get the low information and left wing folks riled up about this. And that's the goal. They'll end up modifying tax laws to take away billions in the short term with no regard for ever reigning in their own spending or caring about the consequences to the businesses.

I shut the hearing off during the opening when Levin blamed Apple, in part, for the sequester. Anyone with the audacity to make a comment like that doesn't deserve to even be heard out.
48 weeks ago
48 weeks ago Link To Comment
Apple has said it does not:

Move its intellectual property into offshore tax havens and use it to sell products back into the U.S. in order to avoid U.S. tax.
Use revolving loans from foreign subsidiaries to fund its domestic operations.
Hold money on a Caribbean island
Have a bank account in the Cayman Islands.


Indeed. As an international company Apple has plenty of resources offshore to keep its offshore RnD and manufacturing running. The IP used to build new products was likely generated at an overseas Engineering Center of Excellence, funded by proceeds from its 2/3 of sales overseas.

These Senators are trying to grasp a wad of Jell-O
48 weeks ago
48 weeks ago Link To Comment
It seems to me that Cook could make this circus pretty short.

Cook: "I have one question: did Apple break any laws? Yes, or no."

Generic Stupid Senator: "No, but you manipulated the--"

Cook: "Wait. Apple didn't break any laws? All you're concerned about is that we took advantage of the laws as they are written? In order to reduce our tax liability as much as possible?

"I seem to recall a Supreme Court Justice advocating for that very thing.

"Have a pleasant day."

End of story.
48 weeks ago
48 weeks ago Link To Comment
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