Apple under fire for using accounting tricks to avoid paying billions in taxes
This is money that would put Americans to work. It would pay for schools. It would pay for defense. It would pay for a lot of things.
Apple set for showdown on Capitol Hill over corporate taxes - May. 20, 2013
One Irish subsidiary -- Apple Operations International, or AOI -- has no employees or presence in Ireland, holding its board meetings and keeping its bank accounts in the U.S., the senators said. AOI reported $30 billion in income from 2009 to 2012, but its management structure allowed Apple to exploit a gap between U.S. and Irish law and avoid paying taxes in either country, the report claims.
Another Apple subsidiary in Ireland, Apple Sales International, booked $74 billion in revenue between 2009 and 2012 but paid taxes only on "a tiny fraction" of that sum, the report says, generating an effective 2011 tax rate of just five hundredths of one percent. The company also ducked taxes on $44 billion in income by transferring the rights to its intellectual property though cost-sharing agreements with its subsidiaries, the senators alleged.
"A company that found remarkable success by harnessing American ingenuity and the opportunities afforded by the U.S. economy should not be shifting its profits overseas to avoid the payment of U.S. tax, purposefully depriving the American people of revenue," McCain said in a statement Monday. The senators did not weigh in on the legality of Apple's tactics.
Apple CEO Tim Cook will take questions from McCain, Levin and other members of the Senate's Permanent Subcommittee on Investigations at a hearing Tuesday morning alongside Apple CFO Peter Oppenheimer and Head of Tax Operations Phillip Bullock.
