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05-22-2013, 02:24 AM #1
Opening Statements from Senate Hearing on Tax Evasion Published by Apple
Apple CEO Tim Cook, CFO Peter Oppenheimer, and Tax Operations Head Phillip Bullock, took the witness table recently at a congressional hearing on Capitol Hill to face U.S. senators who grilled the three men on Apple’s offshore tax practices. The Cupertino California company published Cook and Oppenheimer’s opening statements that detail its now widely reported stance on a comprehensive U.S. corporate tax code form.
To summarize the whole event, both Senator McCain and Senator Levin did their best to accuse Apple of cheating the U.S. tax system by funneling earnings made overseas through its subsidiaries in Ireland, where the company pays ridiculously low tax rates. The fact still remains that there are still several corporations such as Coca-Cola and Microsoft, which resort to the very same tactics when it comes to exploiting loopholes in the U.S. tax system.
For those of you who missed it yesterday, the subcommittee yesterday published a 40-page report which details a probe into Apple’s offshore tax havens. If this wasn’t enough, the subcommittee’s chairman Carl Levin ahead of the hearing issued an unapologetic media release which accused Apple of seeking “the Holy Grail of tax avoidance” by creating “offshore entities holding tens of billions of dollars, while claiming to be tax resident nowhere.”
Somewhat unsurprisingly, Tim Cook made no apology today for his company’s tax strategy and escaped from Washington without much of an issue. Apple on its part remains adamant that the U.S. corporate tax which involves a whopping 35% on repatriated earnings is simply too high. Aside from that, Cook claimed the outdated tax system can’t keep up with the digital age and is thereby reducing the competitiveness of the U.S. economy.
Before the recent hearing, Apple previously published a 17-page document which outlines its push for a fair tax return. Apple quoted in today’s hearing that the company is proposing a revenue neutral tax reform. The company argued saying that the government should eliminate all corporate tax expenditures while lowering corporate income tax rates and implementing a reasonable tax on foreign earnings that allows free movement of capital back to the U.S. Those of you who are interested can watch the full video of Apple’s testimony on C-SPAN.
For those who are even more interested in reading about the issue, the opening statement of Senator John McCain and Senator Carl Levin, along with the full testimonies of Apple’s Tim Cook, Peter Oppenheimer and Phillip Bullock have been made available.
Source: Apple (1) (2), C-SPAN, Senator Carl Levin (1) (2), Senator John McCain, Scribd
05-22-2013, 06:50 AM #2
Intresting. Wonder how it will end
05-22-2013, 07:35 AM #3
So because apple is the most profitble company in the world they go after them alone, yet plenty of other companies do this. Makes sense. Do I think it's right? No. But it's also not right to single out one company.
05-22-2013, 09:13 AM #4
05-22-2013, 09:38 AM #5
Last edited by 5kylar; 05-22-2013 at 09:51 AM.iPhone 5c - iOS 7.0.4 Jailbroken
05-22-2013, 11:19 AM #6
Apple makes money outside the U.S., has a bank account outside the U.S., does not bring the money into the U.S., and ultimately spends it outside of the U.S. and you really think they should go out of their way to pay U.S. taxes on money that was not earned, saved, or spent on U.S. soil despite not legal grounds to say they should?
The way our current tax system works actually punishes a company like Apple who does substantial business outside the U.S. by making it so costly to bring the money they earned back they don't. If you have two legal options which do you honestly choose?
-Option A; create, build and sell a product outside of the U.S., deposit money in Ireland bank account at a 2% tax rate.
Option B; create, build and sell a product outside of the U.S., deposit money in U.S. bank account at a 35% tax rate.
As both options are legal any person who claims they would choose B is not fit to run a company. At least Apple is using this opportunity to bring light to a real problem.
Last edited by REMED1AL; 05-22-2013 at 11:21 AM.
05-22-2013, 12:53 PM #7
05-22-2013, 01:45 PM #8
Yeah this **** is idiotic... If they were breaking laws it's one thing, but they are using legal means to make smart decisions. How are you going to punish someone for your own ****** tax laws if they are going by your rules?
05-22-2013, 02:58 PM #9
05-22-2013, 03:31 PM #10
Just because you would do it doesn't make it right and by all these big companies doing it it's causing our taxes to rise. Do you want to keep fronting the money since all the real money makers are not paying taxes? As far as the money being made outside of the US I think you are just speculating. What I have read it sounds like they are funneling all their money through ireland. I am sure all that money is not made there. Also they are boasting about paying taxes, but they have to of course pay all the sales tax the customers pay for. It just sounds fishy and that's why they are in court. I also dont see why people are defending them since other companies to it too. Who cares who does it? As long as they are going after those who do it will show others that it won't be tolerated. I am sure they will have their day in court dependng on the results here.
05-22-2013, 03:38 PM #11
2. 35% on tax? If most of apples cash reserves are overseas, you're talking billions in taxes. 1 billion is 350 million they'd have to pay in taxes, and apple has how much in overseas cash reserves? Exactly, you're talking over a quarter of what they have, they are finding legal loop holes to avoid losing over a quarter of there profits. Just because there successful doesn't justify taking over a quarter of what they've earned.
05-22-2013, 07:40 PM #12
I say drag Cook and his minions before congress., find them guilty of something and punish the hell out of them.
05-22-2013, 07:45 PM #13
If they don't wanna make new ideas that's on them. Now back to the topic
They ARE paying taxes so learn the story. They are NOT paying what the "government" sees as fair. 35%. They are paying lower and using LEGAL MEANS todo it. Constant lawsuits to protect what's RIGHTFULLY THERE'S.
05-22-2013, 09:00 PM #14
The monies they make over seas they are paying the area taxes appropriately and sending profits to Ireland and only paying maximum 2% on that. They also pay U.S. taxes on the interest earned from over seas bank accounts.
This brought to light how messed up our corporate taxes are. It would cost the 35% tax to move the over seas monies to U.S. minus the taxes they paid locally.
So apple has $100 Billion dollars in profits in Ireland and if they wanted to bring to U.S. they would have $70 Billion or so left. Hmmm should I lose $30B instantly by moving the money to U.S. or keep that $100B in overseas? Duhhhh!
05-24-2013, 06:01 AM #15
The US Government collects enough taxes already from working people and corporations which are paid to the Federal Reserve private bankers as interest on Government Debt which can never be paid back.
Eliminating the corporate tax would be the best thing to do, but then the corrupt politicians would not receive their regular bribery donations from corporations anymore in order for the corporations to have the tax-loopholes passed into law by our corrupt politicians in the first place.
Most people in the world are financial slaves or suckers.