Zee Media Bureau
Washington: Apple chief executive Tim Cook remained unapologetic over allegations of Apple Inc saving billions of dollars in US taxes through Irish subsidiaries.
The Apple CEO told lawmakers that his company backs corporate tax reform, even though it may end up paying more.
The electronics giant's rootless subsidiaries had just one purpose: to funnel much of the company's global profits and dodge billions of dollars in US tax obligations, according to the report by the Permanent Subcommittee on Investigations.
One of Apple's Irish affiliates reported profits of USD 30 billion between 2009 and 2012, but because it did not technically belong to any country, it paid no taxes to any government. Another paid a tax rate of 0.05 percent in 2011 on USD 22 billion in earnings, according to the report.
The panel said that Apple exploited the gap between the two nations, the US and Ireland, through three of its subsidiaries the company claims are not tax resident in any nation, to avoid paying taxes.
"Exploiting the gap between the two nations' tax laws, Apple Operations International has not filed an income tax return in either country, or any other country, for the past five years. From 2009 to 2012, it reported income totalling USD 30 billion," the Senate panel said.
The report found Apple's three subsidiaries had no official tax residence, which made them pay little or no taxes.
With Agency Inputs
First Published: Wednesday, May 22, 2013, 09:17