News / USA

Apple Defends Tax Avoidance

Apple CEO Tim Cook, center, is surrounded by his team during a break from testifying on Capitol Hill in Washington, May 21, 2013.
Apple CEO Tim Cook, center, is surrounded by his team during a break from testifying on Capitol Hill in Washington, May 21, 2013.
Michael Bowman
Top executives of American technology giant Apple faced intense questioning from U.S. lawmakers about the company's use of off-shore entities that allow it to shield billions of dollars in global profits from federal taxes.  Apple’s chief executive admitted to no wrongdoing, but urged an overhaul of the U.S. tax code.
 
Apple’s high-tech consumer products are seemingly everywhere, as noted by Democratic Senator Carl Levin at a hearing of the Permanent Subcommittee on Investigations. “Just like millions around the world, I carry an iPhone in my pocket," he said. 
 
Levin said Apple’s successful business model involves shielding profits from federal taxes. “Apple has sought the Holy Grail of tax avoidance: off-shore corporations that it argues are not for tax purposes resident anywhere in any nation," he said. 
 
Levin said U.S. corporations hold more than $1 trillion in off-shore profits and harm the nation in the process. “They off-load Apple’s tax burden onto other taxpayers, particularly onto working families and small businesses.  The lost tax revenue feeds a budget deficit," he said. 
 
Republican Senator John McCain sounded equally dismayed. “It is completely outrageous that Apple has not only dodged full payment of U.S. taxes, but has managed to evade paying taxes around the world through its convoluted and pernicious strategy," he said. 

Related video report by Jeff Seldin

Tempers Flare, Accusations Fly Over US Tax Loopholesi
X
May 22, 2013 1:52 PM
Tempers are flaring in Washington over concerns and allegations some of the biggest U.S. companies are striking deals with other countries to avoid paying taxes. On Tuesday, lawmakers put one of the best known U.S. companies - Apple - in the spotlight. VOA's Jeff Seldin has more.
Apple’s chief executive, Timothy Cook, defended his company’s practices. “We pay all the taxes we owe, every single dollar.  We not only comply with the laws, but we comply with the spirit of the laws.  We do not depend on tax gimmicks," he said. 
 
But Cook urged an overhaul of America’s astonishingly complex tax code, even if doing so would incur a higher tax burden for Apple.
 
“We recommend a dramatic simplification of the corporate tax code.  This reform should be revenue neutral, eliminate all corporate tax expenditures, lower corporate tax rates, and implement a reasonable tax on foreign earnings that allows the free flow of capital back to the United States," he said. 
 
Some Republican senators objected to the congressional grilling of Apple over its compliance with a tax code crafted on Capitol Hill. 
 
Senator Rand Paul said, “I am offended by a $4 trillion government bullying, berating and badgering one of America’s greatest success stories.  If anyone should be on trial here, it should be Congress.”
 
That brought a sharp reply from Senator Levin. “Apple is a great company.  But no company should be able to determine how much it is going to pay in taxes, how many profits they are going to keep off-shore," he said. 
 
The United States has one of the world’s highest corporate tax rates at 35 percent.  But loopholes and special deductions allow many large firms to pay a significantly lower share of profits.  Most tax reform proposals call for lowering corporate tax rates while eliminating loopholes, yielding a simpler and fairer tax code for all commercial entities. 

You May Like

China May Be Biggest Winner From Ukraine Crisis

Missile sales, oil and gas shipments are among many areas that may drive Beijing and Moscow closer together in coming years More

Obama Faces Chaotic World, Limits of Power

Current foreign policy issues bring into focus challenges for US policymakers who are mindful of Americans' waning appetite for overseas military engagements More

SADC Meeting Lesotho Officials to Resolve Stalemate

Official says regional bloc has been engaged with leaders in Lesotho to resolve political disagreement that led to coup attempt More

This forum has been closed.
Comment Sorting
Comments
     
by: Yoshi from: Sapporo
May 23, 2013 3:51 AM
Six billion dollars a year, yes, it is a huge amount of tax Apple pays. But I would like to ask how much does it get as net profit.

It is said tha tits net profit of this quater was nine point four billion dollars. Is it only me who think Apple has good reason to pay more tax?


by: david lulasa from: tambua,gimaRAKWA,HAMISI,V
May 22, 2013 6:51 AM
apple employees in america and africa are equal,but they are not paid the same for the same measure of work..though apple is selling expensively.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
West Africa Ebola Vaccine Trials Possible by Early 2015i
X
Carol Pearson
August 30, 2014 7:14 PM
A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video West Africa Ebola Vaccine Trials Possible by Early 2015

A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video Survivors Commemorate 70th Anniversary of Nazi Liquidation of Jewish Ghetto

When the German Nazi army occupied the Polish city of Lodz in 1939, it marked the beginning of a long nightmare for the Jewish community that once made up one third of the population. Roughly 200,000 people were forced into the Lodz Ghetto. Less than 7,000 survived. As VOA’s Kane Farabaugh reports, some survivors gathered at the Union League Club in Chicago on the 70th anniversary of the liquidation of the Lodz Ghetto to remember those who suffered at the hands of the Nazi regime.
Video

Video Cost to Raise Child in US Continues to Rise

The cost of raising a child in the United States continues to rise. In its latest annual report, the U.S. Department of Agriculture says middle income families with a child born in 2013 can expect to spend more than $240,000 before that child turns 18. And sending that child to college more than doubles that amount. VOA’s Deborah Block visited with a couple with one child in Alexandria, Virginia, to learn if the report reflects their lifestyle.
Video

Video Chaotic Afghan Vote Recount Threatens Nation’s Future

Afghanistan’s troubled presidential election continues to be rocked by turmoil as an audit of the ballots drags on. The U.N. says the recount will not be completed before September 10. Observers say repeated disputes and delays are threatening the orderly transfer of power and could have dangerous consequences. VOA correspondent Meredith Buel reports.
Video

Video Ukraine Battles Pro-Russia Rebel Assault

After NATO concluded an emergency meeting to discuss the crisis in eastern Ukraine, the country is struggling to contain heavy fighting near the strategic port of Mariupol, on the Azov Sea. Separatist rebels are trying to capture the city, allegedly with Russian military help, and Ukraine's defense forces are digging in. VOA's Daniel Schearf spoke with analysts about what lies ahead for Ukraine.
Video

Video Growing Business Offers Paint with a Twist of Wine

Two New Orleans area women started a small business seven years ago with one thing in mind: to help their neighbors relieve the stress of coping with a hurricane's aftermath. Today their business, which pairs painting and a little bit of wine, has become one of the fastest growing franchises across the U.S. VOA’s June Soh met the entrepreneurs at their newest franchise location in the Washington suburbs.
Video

Video Ebola Vaccine Trials To Begin Next Week

The National Institutes of Health says it is launching early stage trials of a vaccine to prevent the Ebola virus, which has infected or killed thousands of people across West Africa. The World Health Organization says Ebola could infect more than 20,000 people across the region by the time the outbreak is over. The epidemic has health experts and governments scrambling to prevent more people from becoming infected. Zlatica Hoke has more.
Video

Video Asian Bacteria Threatens Florida Orange Trees

Florida's citrus fruit industry is facing a serious threat from a bacteria carried by the Asian insect called psyllid. The widespread infestation again highlights the danger of transferring non-native species to American soil. VOA’s George Putic reports.
Video

Video Aging Will Reduce Economic Growth Worldwide in Coming Decades

The world is getting older, fast. And as more people retire each year, fewer working-age people will be there to replace them. Bond rating agency Moody’s says that will lead to a decline in household savings; reducing global investments - which in turn, will lead to slower economic growth around the world. But experts say it’s not too late to mitigate the economic impact of the world’s aging populations. Mil Arcega has more.
Video

Video Is West Doing Enough to Tackle Islamic State?

U.S. President Barack Obama has ruled out sending ground troops to Iraq to fight militants of the so-called Islamic State, or ISIS, despite officials in Washington describing the extremist group as the biggest threat the United States has faced in years. Henry Ridgwell reports from London on the growing uncertainty over whether the West’s response to ISIS will be enough to defeat the terrorist threat.
Video

Video Coalition to Fight Islamic State Could Reward Assad

The United States along with European and Mideast allies are considering a broader assault against Islamic State fighters who have spread from Syria into Iraq and risk further destabilizing an already troubled region. But as VOA State Department Correspondent Scott Stearns reports, confronting those militants could end up helping the embattled Syrian President Bashar al-Assad.
Video

Video Made in America Socks Get Toehold in Online Fashion Market

Three young entrepreneurs are hoping to revolutionize the high-end sock industry by introducing all-American creations of their own. And they’re doing most of it the old-fashioned way. VOA’s Julie Taboh recently caught up with them to learn what goes into making their one-of-a-kind socks.
Video

Video Americans, Ex-Pats Send Relief Supplies to West Africa

Health organizations from around the world are sending supplies and specialists to the West African countries that are dealing with the worst Ebola outbreak in history. On a smaller scale, ordinary Americans and African expatriates living in the United States are doing the same. VOA's Carol Pearson reports.

AppleAndroid