Apple prepares for Washington onslaught: CEO Tim Cook isn’t taking any chances with senators looking to grandstand

“Apple isn’t taking any chances with senators looking to embarrass CEO Tim Cook on Tuesday at a hearing on the tech giant’s offshore $100 billion stash,” Anna Palmer reports for Politico. “Monday night lawmakers were already gearing up, unveiling a report that alleges Apple avoided paying taxes on $44 billion in offshore, taxable income.”

“A Senate panel says Apple did not break the law but did find a new way to limit its tax burden — three of its subsidiaries in Ireland do not pay income taxes to any country,” Palmer reports. “To deal with the nasty optics, Apple has turned to a top Washington law firm for help, O’Melveny & Myers – veterans at trying to keep big companies out of trouble, like Enron, Ford and Goldman Sachs.”

“Firms like O’Melveny & Myers work closely with committee investigators to track down what CEOs can expect to face. And they try to limit the scope of the investigation before the hearing even takes place,” Palmer reports. “Apple has also sent its own hired guns to Capitol Hill for recon duty. Their mission: find out the planned line of questioning and expose any surprises senators plan to air. Meanwhile, Cook and two other top execs are doing their homework in Apple’s Washington office, which has become ground zero for the company’s preparations.”

Read more in the full article here.

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65 Comments

      1. Current… Levin is either stupid or lying/cheating/ politician.

        currently he is saying that IP was transfered to Ireland for world sales….. true…. but then he says IP makes all the profits and he is wrong… Hardware sales are profits. … not IP.

        IP is transfered so you can sell in Europe…. profits of hardware and software coding are kept in Ireland… IP is not profit generator…. Crown jewels are IP and not profit makers…

        Levin is either just trying to protect his butt or just stupid.

        My thoughts….

      1. IRS is a much hated, clearly corrupt and discredited branch of government thugs. New York Times is not fit to line a bird cage, Democrats love to hate big business.

        1. Rand Paul is a conservative, right? I hate when conservatives force people who make money, to keep the money they worked hard for!

          Maybe GE needs to be at the table and not Apple? GE pays zero Federal taxes this past year. Why? Because they are good buddies with Obama! I love the way Obama is leveling the playing field!

          Four more painful years! Four more painful years! Four more painful years!

          1. Stop watching Fox. You’re brainwashed. Google it. And if Rand Paul were on the side of oxygen, that wouldn’t make him anything other than a walking turd. Case in point- Rush Limbaugh. The manure that manure makes.

            1. Not a big Fox fan (do love to listen to Charles Krauthammer). Let me help you with something better that “Google”… go to theblaze.com and also drudgereport.com, you may expand your understanding of what is really going on around you.

              Read this for a few weeks…I can add more to your reading list.

              You are welcome.

            2. And you know this because you’ve watched FOX and found this brainwashing and the falsehoods? Have you documented it? Or are just regurgitating things you’ve heard from someone else who has never watched FOX either. And I’m sure you’ve listened to Rush Limbaugh sufficiently to have developed your own opinion instead of repeating everything you’ve heard from others who repeat what they’ve heard who also never have listened sufficiently long to understand.

          2. The canard that General Electric pays ZERO taxes was first made public in a campaign advertisement by Democrat Elizabeth Warren when she was running against Senator Scott Brown (R) in Massachusetts. It was totally untrue when she said it about GE in her Campaign in 2012 about GE’s taxes for 2010, a year in which GE did pay taxes at a 7% rate on their $6.5 billion in earnings worldwide, after suffering a $32 billion dollar LOSS during the 2008-2010 financial crisis and had loss carry overs, but they also paid taxes at a rate of 29% in the 2011 tax year. They did NOT get a $3.2 Billion dollar refund in either of those years as the New York Times mistakenly reported. These facts were revealed by Fortune Magazine and the Liberal FactCheck.org, as well as ANOTHER liberal fact checking organization Pro Publication. Of course liberals people never let facts get in the way of their attacks on business. . . Or pushing their agenda. This GE paid no taxes meme is patently false but it plays well with the ignorati.

      2. If you bothered to pay any attention or watched the hearing before opening your uninformed judgmental mouth, you would know, up to now, the Republicans have been leading the charge. A Republican is head of the committee conducting the investigation and a Republican control the entire process. Additionally, the IRS has just about zero to do with this since all government parties agree Apple’s structure for taxes is 100% legal. And the NY Times? I read their article. It’s pure reporting and hardly a shred of editorialization. I suppose you think Fox is fair and balanced.

      3. No Thelonius, not just Senate Democrats. John McCain, albeit respectfully, has been INSISTENT that Apple has pulled trickery to hide its actual income from the USA. McCain is refusing to comprehend what Tim Cook and associates at the hearings have been very eloquently detailing to the committee.

        Sorry but its the US government in general that is at fault here and they are refusing to either acknowledge it or do anything to fix it. Instead the entire focus has been on what Apple does with its money overseas, where indeed the USA has ZERO jurisdiction in any case. It’s a farce perpetrated by BOTH of our worthless US political parties.

        But the break in the show is concluding, so back to the farce…

        1. John McCain is progresively destroying whatever respectability he ever had. I don’t care how many years he was tortured, he still inflicted Sarah Palin on us. Talk about backstabbing…

      4. “The Government” is us. Your representatives are supposedly accountable to you, the voter. If voters spent a fraction of the time telling your congressman what you wanted instead of allowing corporate lobbyists to dictate the show, then the nation would offer people a much fairer playing field.

        The reason Cook is going to the Hill is largely because Apple competitors have concocted a witch hunt. Place your hatred on lobbyists, not the government that we all allowed to be bought from under our noses.

    1. Well, Steve is not here, so grow up and quit living in your fantasy world. Make believe and wishful thinking are not going to make Apple a better and stronger company.

          1. @ MacFreek
            You REALLY are nothing but a poisonous little bully, and your words are much worse that a mere waste of space. I’m pretty sure there is no-one who finds your postings of any value at all.

  1. If anyone reading this could LEGALLY lower his or her tax bill, would they do it? I simply can’t believe the hypocrisy surrounding this whole topic. It’s repeatedly said that Apple has not broken any nations’ tax laws. If US Senators don’t like what’s happening, they only have themselves to blame because they created (along with the House and the President) our tax laws.

    1. Amen brother.

      Paying as little tax as possible is within the spirit this country was founded on.

      Apple is being patriotic in protecting their money if you ask me.

      1. Actually, the country was founded on the principle of having legislative representation in the passing of those taxes. President Washington even used the US Army to put down a rebellion regarding taxes in 1791. Protesting “taxation without representation” is not the same thing as protesting taxes at all.

  2. This is just another example of how good Apple’s management team is. Since I own a lot of AAPL, I am very pleased to see Apple working every aspect of the tax code. As a side, this is more of an indictment of congress and the tax code that they wrote.

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