Apple investigated for tax avoidance
21 May, 2013
In an investigation into large companies shifting profits offshore, a Senate committee has claimed that Apple is one of the largest tax avoiders in the US.
The committee is claiming that the tech giant avoided federal taxes worth $9billion last year and that it used a ‘complex web of offshore entities’ and five affiliate companies in Ireland to carry out its strategic tax process.
Although the committee has said there is no indication that Apple had broken the law, such tax avoidance activities are viewed with disdain, especially in such financially tough times.
In the committee’s report, chairman Sen. Carl Levin, D-Mich.,said: “Apple wasn’t satisfied with shifting its profits to a low-tax offshore tax haven.”
He added: “Apple sought the Holy Grail of tax avoidance. It has created offshore entities holding tens of billions of dollars, while claiming to be tax resident nowhere.”
The company faces tough questions today (Tuesday 21st May) as CEO Tim Cook prepares to stand before the panel to deny any wrongdoing.
Apple has said that it is one of the biggest taxpayers in the US, paying a tax bill of around $6 billion in 2012. However, committee member John McCain said that ‘by sheer size and scale, it is also among America’s largest tax avoiders’.