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.
TEXT SIZE - +
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
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

Analysts Warn of Regional Proxy Conflict in Afghanistan

Analysts warn if Kabul’s neighbors do not start to cooperate, competing desires for influence could deteriorate into a bloody proxy war in the country More

Saudi Intelligence Chief Resigns

Bandar bin Sultan came under criticism for supporting al Qaida, prompting King Abdallah to wrest Syria operations away from him in February, handing them to Interior Minister Prince Mohammed bin Nayef More

Poetry Magazine editor Don Share talks what makes a good poem with VOA's David Byrd

What makes a good poem? And is poetry as viable an art form as it once was? To find out, VOA's David Byrd spoke to Don Share, the editor of Poetry Magazine. 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.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid