Apple defends its tax paying record in the US
CEO Tim Cook due to be questioned by US Senate.
Apple has released a 17-page statement defending its tax policy ahead of a hearing in front of the US Permanent Subcommittee on Investigations later today.
Tim Cook CEO of Apple, Peter Oppenheimer CFO, and Phillip A. Bullock head of tax operations will be answering questions from officials tied to Homeland Security, the IRS and Department of the Treasury, in a hearing titled "Offshore Profit Shifting and the U.S. tax code Part 2".
Apple has defended its tax paying record, in a statement prior to the hearing. The iPhone maker claims to have paid, collected or remitted $1.3 billion in state sales and use taxes and $830 million in state income tax during 2012. This was on the back of total annual revenue of $156.53 billion, 61 per cent of which it claims revenue was from international operations.
Apple pays all its required taxes, both in this country and abroad.
The firm vehemently denies the allegations of financial misconduct, stating that it does "not use tax gimmicks" and suggesting the US restructure its tax policies.
"Apple welcomes an objective examination of the US corporate tax system, which has not kept pace with the advent of the digital age and the rapidly changing global economy," the firm said in testimony.
"The company supports a comprehensive tax reform as a necessary step to promote growth and enable American multinational companies to remain competitive with their foreign counterparts in both domestic and international markets."
The hearing is just the latest case of Government organisations cracking down on large company's questionable tax practices. Last week, Amazon and Google were back in the spotlight after members of UK Government accused them of ongoing tax avoidance related to their UK operations.
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