“Apple is the target of a Senate hearing next week investigating offshore tax practices,” Anna Palmer reports for Politico. “Apple CEO Tim Cook is expected to testify at the Senate Permanent Subcommittee on Investigation’s hearing Tuesday.”
“Apple has been under fire for its tax practices. The company recently avoided paying as much as $9.2 billion in taxes by buying back stock with debt instead of offshore cash, Bloomberg reported,” Palmer reports. “Apple has a reported $100 billion in offshore funds.”
Palmer reports, “The hearing is part of the panel’s continued examination of how companies shift profits offshore and how that impacts the tax code. Representatives from Microsoft and Hewlett-Packard testified in September 2012 in a hearing on the same topic. Apple spokesman Steve Dowling told Politico that the company has been working with the subcommittee and welcomes any further questions it might have.”
Read more in the full article here.
MacDailyNews Take: Apple did not “shift profits offshore.” Apple earned those profits offshore, where they were taxed in the countries as allowed by law. Hence Apple’s aversion to bringing the money into the U.S. in order for it to be taxed twice.
[Thanks to MacDailyNews readers too numerous to mention individually for the heads up.]
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