Polotico has reported that the technology giant Apple has been under attack for its poor tax practices and as a result of that CEO Tim Cook now has to testify in front of the U.S. Senate to give an explanation on the offshore tax strategies of the multinational corporation. Here is an extract from Polotico’s report: “Apple CEO Tim Cook is expected to testify at the Senate Permanent Subcommittee on Investigation’s hearing Tuesday, POLITICO has learned. Apple has been under fire for its tax practices. The company recently avoided paying as much as $9.2 billion in taxes by buying back stock with debt instead of offshore cash, Bloomberg reported. Apple has a reported $100 billion in offshore funds.” The Cupertino-based company has $100 billion funds in its offshore accounts.
However, this is not the first time that a multinational tech company had to testify in front of the Senate. Last fall representatives of both Hewlett-Packard and Microsoft had to go through similar sorts of hearing over tax issues.
The agenda of Apple’s hearing is as follows:
“The Permanent Subcommittee on Investigations has scheduled a hearing, “Offshore Profit Shifting and the U.S. Tax Code – Part 2” on Tuesday, May 21, 2013, at 9:30 a.m. in Room 106 of the Dirksen Senate Office Building.
The Subcommittee will continue its examination of the structures and methods employed by multinational corporations to shift profits offshore and how such activities are affected by the Internal Revenue Code and related regulations. Witnesses will include representatives from the Department of the Treasury, the Internal Revenue Service, representatives of a multinational corporation, and tax experts. A witness list will be available Friday, May 17, 2013.”
Talking to Politico, Apple spokesman Steve Dowling said that the company would gladly answer any questions from the subcommittee. Dowling said, “Apple is one of the largest taxpayers in the United States, having paid $6 billion in federal corporate income tax in fiscal 2012. We also help create hundreds of thousands of jobs in the U.S. by keeping our R&D in California and creating category-defining products like the iPhone, iPad and the app store, which has generated billions of dollars in sales for software developers.”
Cook on the other hand testified earlier in an ongoing ebooks antitrust case in Department of Justice, in which according to several reports Apple claimed it had nothing to do with the rise in the price of ebooks and claimed the accused publishers have revised the price on their own.
Source: iPhoneinCanada
Photo: Wikipedia
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