Apple CEO Tim Cook faces the US Senate, bipartisan senators plan to question Apple’s creativity in tax avoidance
Apple has already made its planned remarks before a Senate committee on Tax Reform known.
Here’s what the other side has to say via Michigan’s Carl Levin (Democrat) on the senator’s view of Apple’s tax avoidance strategy:
“Apple wasn’t satisfied with shifting its profits to a low-tax offshore tax haven. Apple sought the Holy Grail of tax avoidance. It has created offshore entities holding tens of billions of dollars, while claiming to be tax resident nowhere. We intend to highlight that gimmick and other Apple offshore tax avoidance tactics so that American working families who pay their share of taxes understand how offshore tax loopholes raise their tax burden, add to the federal deficit and ought to be closed.”
Republican Senator John McCain adds:
“Apple claims to be the largest U.S. corporate taxpayer, but by sheer size and scale, it is also among America’s largest tax avoiders. A company that found remarkable success by harnessing American ingenuity and the opportunities afforded by the U.S. economy should not be shifting its profits overseas to avoid the payment of U.S. tax, purposefully depriving the American people of revenue. It is important to understand Apple’s byzantine tax structure so that we can effectively close the loopholes utilized by many U.S. multinational companies, particularly in this era of sequestration.I have long advocated for modernizing our broken and uncompetitive tax code, but that cannot and must not be an excuse for turning a blind eye to the highly questionable tax strategies that corporations like Apple use to avoid paying taxes in America. The proper place for the bulk of Apple’s creative energy ought to go into its innovative products and services, not in its tax department.”
Apple Chief Executive Officer Tim Cook, Chief Financial Officer Peter Oppenheimer, and Tax Operations Head Phillip Bullock will be on hand giving testimony. Check back tomorrow for the blow by blow. Expand