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  • Cook: We Pay Every Dollar We Owe


    Tim Cook is heading to Washington to talk taxes and overseas cash with the message: We pay every dollar that we owe. The CEO is set to testify in front of the Senate Permanent Subcommittee on Investigation on Tuesday and the Apple chief spoke with Politico ahead of the hearing. He defended Apple’s conduct saying that the Cupertino California company is operating well within the rules with regard to taxes, referring to a massive overseas cash hoard. He said the following regarding the matter:

    I can tell you unequivocally. Apple does not funnel its domestic profits overseas. We don't do that. We pay taxes on all the products we sell in the U.S., and we pay every dollar that we owe. And so I'd like to be really clear on that.
    As of March 30, Apple held $102.3 billion in cash overseas, up 24% from the end of September 2012. The company can’t bring those funds back to the United States without paying corporate taxes on them.

    For those of you who are unaware of the situation, Apple’s cash issue came under the limelight over the past few months as investors who were dissatisfied with slowing revenue growth and a declining stock called for the company to turn some of its overseas holdings into a bigger dividend. Apple eventually circumvented the tax issue by taking on $17 billion in debt. The move, which was the firm’s first bond offering since 1996, allowed Apple to fund billions in cash returns to investors while avoiding the $9.2 billion it would have paid had it brought its overseas cash home.

    It should be noted that Apple isn’t the only large corporation that keeps its money off American shores. A recent analysis found that Apple was holding roughly $40 billion in untaxed earnings in countries with a more favorable tax structure, such as Ireland. Google and Amazon are other tech giants that have done the same for tax reasons.

    Many senators are quite ready to tear into Apple but it’s likely that Cook will parry such criticisms by pointing to Apple’s impact on the American economy. The company employs 50,000 workers in all 50 states and its actions have created another 550,000 jobs in manufacturing and software development. Cook will likely note the company’s $100 million investment in domestic manufacturing with a U.S.-built Mac expected to roll off production lines this year as well.

    We’ll ultimately see how things turn out though when Cook testifies in front of the Senate Permanent Subcommittee on Investigation.

    Source: Politico
    This article was originally published in forum thread: Cook: We Pay Every Dollar We Owe started by Akshay Masand View original post
    Comments 4 Comments
    1. highboi's Avatar
      highboi -
      If us companies kept their money on us soil im sure out economy will be much
      Better
    1. b1997469's Avatar
      b1997469 -
      You know how Apple "pay every dollar they own"? They sue others then pay with what they win.
      They got Samsung to make the parts for the iPhone then they sue them so they end up getting all those parts for free and more to pay the bills and keep the rewards. THAT'S why I won't be giving Apple any more of my money.
      I bet if they didn't sue others they would be bankrupt for their corrupt business practices.
    1. tangus999's Avatar
      tangus999 -
      maybe if the tax laws werent so stupid in the US apple would keep their money here. apples a business. who wants to make money. if i could do what apple is doing to save money i would too. who wants to PAY MORE TAXES? REALLY!?
    1. ThatOneProfile's Avatar
      ThatOneProfile -
      Quote Originally Posted by tangus999 View Post
      maybe if the tax laws werent so stupid in the US apple would keep their money here. apples a business. who wants to make money. if i could do what apple is doing to save money i would too. who wants to PAY MORE TAXES? REALLY!?
      Before you know it, we will pay taxes to withdrawal money from our bank accounts.