Apple boss defends its core tax strategy
Tim Cook hits back at senate subcommittee claims of Apple avoiding billions of dollars in tax
APPLE’s chief executive defended the company’s tax strategy in a stormy public meeting with US politicians.
Tim Cook told a senate subcommittee yesterday that the technology business pays every dollar of US tax that it owes. The subcommittee, however, accused Apple of “complicated and pernicious” measures by which to keep its profits out of the US, and taxed at lower rates through the use of holding companies in Ireland.
“We don’t depend on tax gimmicks,” said Cook, adding that Apple doesn’t move intellectual property offshore and sell back into the US, reported City AM.
Cook called on a simpler tax system, and in turn a lower US corporate tax rate. “The tax code has not kept up with the digital age.”
But the committee’s report in Apple made a claim that it had avoided $9bn (£4.6bn) in US taxes – although done nothing illegal.