Apple Kept Billions Out of IRS' Reach: Probe
Though tax havens and subsidiaries
By Ruth Brown, Newser Staff
Posted May 20, 2013 5:28 PM CDT
A man leaves an Apple store with an iPhone and an iPad.   (AP Photo/Alexander F. Yuan)

(Newser) – A Senate inquiry into Apple has accused the company of keeping billions out of the reach of the IRS through tax havens and a complex network of overseas subsidiaries. The company runs its non-American operations through affiliates based in Ireland, which has a low tax rate. However, investigators say many have no employees and are effectively run out of California, the New York Times reports. Additionally, its top offshore holding company, Apple Operations International, doesn't have an official tax residence at all, and hasn't filed a tax return on $30 billion in profits earned from 2009 to 2012, says Politico.

All told, the company has kept at least $74 billion out of the IRS' reach, the inquiry found, per the Times. "Apple wasn’t satisfied with shifting its profits to a low-tax offshore tax haven," said one senator. "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." Apple has not commented, but CEO Tim Cook will face a Senate hearing tomorrow, where he is expected to argue that, "Apple does not use tax gimmicks," and that the US should overhaul its tax code.

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Showing 3 of 41 comments
rugdoc
May 21, 2013 3:52 PM CDT
this corparation makes the first slave owner's look like little bo peep.... i wont own any apple products since the have children building their over priced products ! slap a big tariff on all their shit coming from overseas (CHINA) they dont employ hardly any americans fk em....
politicalobsever
May 21, 2013 3:01 PM CDT
So why would any company now want to give more money through taxes through the current Administration when they are not trustworthy with people's IRS information? Why does Carl(Karl?) Levin think that the current administration that can't even account for the Stimulus money. John Corzine( 1.5 Billion missing??)? Where do they get their sense of entitlement. What he is saying is that they get to demand what they want without having any accountablilty themselves.
clmsman
May 21, 2013 12:39 PM CDT
Its their money not the governments that's one thing the government never seems to grasp. The government feels and especially the Democrats who endlessly piss away money on BS programs to get votes that this money is theirs for the harvesting Apple was with the law and they don't like that change the law. God I am sick of this money grubbing thieving federal government bleeding the makers to give to the takers. Apple should give the big one finger salute.