Apple chief was grilled - digi.no

ad

Top Apple Tim Cook had to explain Tuesday why Apple hardly pay taxes on the money the company earns outside the United States to a hearing in Congress. Recent revelations about how Apple has worked out to minimize the tax bill has created furore in American political life.

Read also:

• [21/05/2013] Apple gets tax beating in USA

Apple has very good income from his business outside the U.S., but this will be little or no U.S. taxes. Instead, Apple has put up various stack structures with its base in Ireland as a starting point.

– We pay all the taxes we owe. Every dollar, said Cook according to the Los Angeles Times when he testified Tuesday.

– We focus not only in letter but also the spirit by law, said continued Cook before he gave rice back to the politicians in Congress: The tax system is not adapted to the digital age and the tax prevents the free flow of capital to a far greater extent than other countries’ tax system.

He also called for dramatically simplifying the U.S. tax system for businesses, including by reducing taxes and the tax level on income earned outside the United States “sensible.”

Today, U.S. corporate tax the income they earn outside the United States, if they are taken into the country . It’s Apple, and several other American companies failed to do.

Among other things, Apple has over $ 100 billion, a cash balance of around 145 billion, standing on accounts outside the United States. If money is to be spent in the U.S. will trigger a significant tax bill.

– We are proud to be an American company and is also proud to contribute to the U.S. economy, said Cook according Los Angeles Times.

The hardest critic against Apple has been the Democratic Congressman Carl Levin. He accused Apple to operate with “ghost companies” and “alchemy” to avoid the tax burden of the U.S. tax system has placed on them.

– Apple executives want the public to focus on the taxes paid by the company, but the important question is the billions of dollars the company has not paid thanks to tax strategies that have a single purpose: to avoid taxes, said Levin.

It’s no wonder this has been a theme in U.S. policy and the rest of the world. The economic downturn has meant that budgets are slim. Politicians looking high and low for revenue to finance the public sector, while it cut significantly.

But Apple did not just criticism during yesterday’s hearing, reports the Los Angeles Times. Senator Rand Paul said Apple’s critics should apologize to the company.

– Quite frankly, I am offended by the government’s bullying, verbal attacks and harassment of one of America’s greatest success stories. What Apple has done that is illegal? he asked rhetorically, and continued:

– Congress should apologize for creating bizarre and “Byzantine” tax rules, nor given Apple complements for creating jobs, said Paul.

About tax controversy will lead to a simplification of the U.S. tax rules remains to be seen. Apple and several other technology companies will not deflect. As long as all tax adjustments they make within the letter will ever greater capital bases being built outside the United States.