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

    Top US General: Turkish Media Report ‘Absurd'

    General Dunford rejects ‘irresponsible' claims of coup involvement by former four-star Army General Campbell, who led NATO forces in Afghanistan before retiring earlier this year

    Video Saving Ethiopian Children Thought to Be Cursed

    'Omo Child' looks at efforts of one African man to stop killings of ‘mingi’ children

    Protests Over Western Troops Threaten Libyan 'Unity' Government

    Fears mount that Islamist foes of ‘unity' government plan to declare a revolutionaries' council in Tripoli

    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.
    London’s Financial Crown at Risk as Rivals Eye Brexit Opportunitiesi
    X
    VOA News
    July 25, 2016 5:09 PM
    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video London’s Financial Crown at Risk as Rivals Eye Brexit Opportunities

    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video Recycling Lifeline for Lebanon’s Last Glassblowers

    In a small Lebanese coastal town, one family is preserving a craft that stretches back millennia. The art of glass blowing was developed by Phoenicians in the region, and the Khalifehs say they are the only ones keeping the skill alive in Lebanon. But despite teaming up with an eco-entrepreneur and receiving an unexpected boost from the country’s recent trash crisis the future remains uncertain. John Owens reports from Sarafand.
    Video

    Video Migrants Continue to Risk Lives Crossing US Border from Mexico

    In his speech Thursday before the Republican National Convention, the party’s presidential candidate, Donald Trump, reiterated his proposal to build a wall along the U.S.-Mexico border if elected. Polls show a large percentage of Americans support better control of the nation's southwestern border, but as VOA’s Greg Flakus reports from the border town of Nogales in the Mexican state of Sonora, the situation faced by people trying to cross the border is already daunting.
    Video

    Video In State of Emergency, Turkey’s Erdogan Focuses on Spiritual Movement

    The state of emergency that Turkish President Recep Tayyip Erdogan has declared is giving him even more power to expand a purge that has seen an estimated 60,000 people either arrested or suspended from their jobs. VOA Europe correspondent Luis Ramirez reports from Istanbul.
    Video

    Video Calm the Waters: US Doubles Down Diplomatic Efforts in ASEAN Meetings

    The United States is redoubling diplomatic efforts and looking to upcoming regional meetings to calm the waters after an international tribunal invalidated the legal basis of Beijing's extensive claims in the South China Sea. VOA State Department correspondent Nike Ching has the story.
    Video

    Video Four Brother Goats Arrive in Brooklyn on a Mission

    While it's unusual to see farm animals in cities, it's become familiar for residents of Brooklyn, New York, to see a little herd of goats. Unlike gas-powered mowing equipment, goats remove invasive weeds quietly and without adding more pollution to the air. As Faiza Elmasry tells us, this is a pilot program and if it proves to be successful, the goat gardener program will be extended to other areas of New York. Faith Lapidus narrates.
    Video

    Video Scientists in Poland Race to Save Honeybees

    Honeybees are in danger worldwide. Causes of what's known as colony collapse disorder range from pesticides and loss of habitat to infections. But scientists in Poland say they are on track to finding a cure for one of the diseases. VOA’s George Putic reports.
    Video

    Video Wall Already Runs Along Parts of US-Mexico Border

    The Republican Party’s presidential nominee, Donald Trump, gained the support of many voters by saying he would build a wall to keep undocumented immigrants and drugs from coming across the border from Mexico. Critics have called his idea impractical and offensive to Mexico, while supporters say such a bold approach is needed to control the border. VOA’s Greg Flakus has more from the border town of Nogales, Arizona.
    Video

    Video New HIV Tests Emphasize Rapid Results

    As the global fight against AIDS intensifies, activists have placed increasing importance on getting people to know their HIV status. Some companies are developing new HIV testing methods designed to be quick, easy and accurate. Thuso Khumalo looks at the latest methods, presented at the International AIDS conference in Durban, South Africa.
    Video

    Video African Youth with HIV Urge More Support

    HIV, the virus that causes AIDS, is the top killer of teens in sub-Saharan Africa. But many youths say their experience with the virus is unique and needs to be addressed differently than the adult epidemic. VOA South African Correspondent Anita Powell reports.
    Video

    Video Pop-Up Art Comes to Your Living Room, Backyard and Elsewhere

    Around the world, independent artists and musicians wrestle with a common problem: where to exhibit or perform? Traditional spaces such as museums and galleries are reserved for bigger names, and renting a space is not feasible for many. Enter ArtsUp, which connects artists with venue owners. Whether it’s a living room, restaurant, office or even a boat, pop-up events are bringing music and art to unexpected places. Tina Trinh has more.
    Video

    Video Scotland’s Booming Whisky Industry Fears Brexit Hangover

    After Britain’s vote to leave the European Union, Scotland’s government wants to break away from the United Kingdom – fearing the nation’s exports are at risk. Among the biggest of these is whisky. Henry Ridgwell reports on a time of turmoil for those involved in the ancient art of distilling Scotland’s most famous product.

    Special Report

    Adrift The Invisible African Diaspora