Posted on 05/20/2013 5:33:56 PM PDT by SeekAndFind
Apple Inc. paid little to no corporate income tax to any national government on tens of billions of dollars in overseas income over the past four years, Senate investigators found, a revelation that fuels the debate over whether the U.S. tax code needs an overhaul.
The disclosure follows a lengthy examination of the technology giant's tax practices by the U.S. Senate's Permanent Subcommittee on Investigations, which is expected to air its findings at a hearing on Tuesday. Apple Chief Executive Tim Cook is preparing to testify at the hearing, and is expected to propose changes to a tax code that provides American companies strong incentives to keep overseas earnings bottled up at foreign subsidiaries.
Apple used technicalities in Irish and American tax law to pay little or no corporate taxes on at least $74 billion over the past four years, according to the Senate panel's findings. The investigation found no evidence that Apple did anything illegal. Aides to the subcommittee said they have never seen a company employ such a complex structure.
Apple didn't dispute that the entities it set up didn't pay corporate taxes but denied they were designed to avoid taxes. The company said it pays local taxes on overseas earnings and U.S. taxes on investment income generated at its Irish subsidiaries.
The company pointed to the "extraordinary" amount of corporate income taxes it pays—$6 billion in 2012—and said its U.S. effective federal cash tax rate was 30.5% last year, not much below the 35% statutory rate.
"What they often leave out is the second part of the story, that Apple is one of the largest tax avoiders," said Sen. John McCain (R., Ariz.), who described Apple as the "most egregious offender" among U.S. corporations trying to avoid tax bills.
(Excerpt) Read more at online.wsj.com ...
As long as they broke no laws it’s nobody’s business.
If the lowest tax rate was here, with no exemptions, the taxes would be paid here. They would spend as much time ensuring that taxes are paid here as they do now ensuring that they don’t.
Abuse by the IRS against conservatives finalizes the debate that the U.S. tax code needs an overhaul.
Repeal the 16th Amendment, establish a flat consumption tax paid only by individual consumers.
They owe it to their shareholders to avoid every last cent that they can legally.
It doesn't matter what the intent was, if the "entities" save them cash, that's what the management is supposed to do.
McCommie needs to retire to that nice little house in Sedona that Cindy bought for him and admire the sunsets.
Why would any company repatriate money they made overseas ( already taxed there ) back to the US where they will be TAXED AGAIN at the highest tax rate in the developed world?
“As long as they broke no laws it’s nobody’s business.”
I just don’t understand WHY people are “mad” at corporations for this. It is the DUTY of the officers of the company to make the most profit as possible to their shareholders. Anything less is unacceptable.
Absolutely.
The unemployed IRS agents can get private sector jobs with Apple in the resulting economic boom.
Assuming they have anything like usable skills, which is an iffy assumption.
Millionaires and Billionaires are cool as long as they donate to Baraq.....
Hah. Says who? The 'effective' tax rate is pretty low right now. Why would they pay a higher amount in the future when they can use tax avoidance right now to pay almost nothing.
Secondly, what would that magic tax rate be for a corporation? As it is, nomatter the amount, companies will use their resources to pay as little as possible, so the proposed tax rate will almost certainly never be 'paid'.
Yep, good for them and my 401k.
If it’s in your 401K then it IS your business. Good fortune to you.
Eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeexactly right!
I’m sure no Apple employees pay taxes. /s
0bama donors get a pass?
Corporate taxes are a joke. They just pass it on to the consumer. Corporations don’t pay taxes, they collect them for the government.
I guess we can assume Apple kissed dem butt...
Corporations don’t pay taxes, their customers do.
There in lies the problem. The tax code allows multi-billion dollar companies to avoid paying their fair share...which leaves middle income Americans carrying the burden.
This sort of thing is reported every single year round tax time. Lists of corporations that pay little or no federal income tax.
I'm thinking...whats wrong with this picture?
Somehow this doesn’t bother them.
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