Apple’s CEO Tim Cook recently defended its company as being a proud American business that pays all its US taxes, like any other US Corporation.
Being accused of biasing the US government, Apple recently clarified the issue by suggesting the fact that the Fruit Company pays all of the US taxes. According to the chief executive, Apple paid around $6 billion to the US Treasury last year. Moreover, Cook also mentioned the fact that Apple was directly or indirectly responsible for creating more than 600,000 American jobs.
A few days ago, Apple’s CEO, along with Apple’s Chief Financial officer Peter Oppenheimer, was called before the US Senate Permanent Subcommittee on Investigation, which is looking for miscommunications between tax payers and the US government. The subcommittee focused on Apple because some officials described Apple’s move as being a unique strategy of using “ghost” corporations in Ireland to avoid US Corporate taxes.
As Cook stated, “Apple has real operations in real places with Apple employees selling real products to real customers. We pay all of the taxes we owe – every single dollar. We not only comply with the laws, but we comply with the spirit of laws.”
In the same time, Apple’s CEO also mentioned the fact that the company is planning to assemble an entire Mac line in the US this year. Cook also revealed the fact that those machines will be assembled in Texas, without mentioning the name of the product to be made in America.
During the investigation, Apple has asked legislators to consider making sweeping changes to the US tax code in the current form. At this moment, the company owns more than $100 billion in cash stored overseas, money that Apple does not plan to repatriate because of the tax rates.
As a part of his defense, Apple’s CEO clearly denied the fact that Apple uses tax gimmicks. On the other hand, Peter Oppenheimer accompanied the company’s chief executive officer and he offered the senators a closer look at the company’s operations. To make things clear, he stated that Apple is in “full compliance with all laws and regulations”.
The republican part of the committee, Sen. John McCain, required answers from Cook regarding its Ireland subsidiary, which was characterized by McCain as being used as a tax dodge. Cook disagreed, and he described AOI as an “efficient way to manage cash that has already been taxes in other jurisdictions”.
At this point, Apple is the largest corporate income tax payer in America. Besides all of the already-mentioned benefits that the company is providing to the American citizens and government, the Company offers innovative products to all Americans and people all over the world.