Apple, America’s richest, most innovative consumer technology company, is also the most creative in hiding billions of dollars in profits from the taxman, according to congressional investigators. But on Tuesday in testimony before the Senate Permanent Subcommittee on Investigations, Apple CEO
Cook told the senators that Apple paid a $6-billion tax bill to the federal government last year. Not only does Apple pay everything owed to the
The subcommittee chairman, Sen.
According to congressional investigators, Apple has developed an overseas network of obscure subsidiaries that are run by executives in Apple's Cupertino headquarters, often with no employees in the locations where they are technically based. For the most part, the subsidiaries do not exist for any other reason than to have huge chunks of corporate earnings assigned to them on paper, thus making it possible for Apple to keep that money outside the reach of the IRS. One Irish subsidiary has paid almost zero tax on $30 billion in profits since 2009, according to investigators.
Before the hearing, Sen.
McCain’s fellow Republican Sen.
Stated more gently, that was Cook's ultimate point as well. He called for a lowering of the corporate tax rate and a simplification of the law. Such changes would likely mean Apple would end up paying more in taxes, Cook told the senators.