Apple Avoids Most Income Taxes, Panel Finds - WSJ Apple’s Web of Tax Shelters Saved It Billions, Panel Finds - NYTimes Apple CEO to Take on Lawmaker Statements on Tax Avoidance - Bloomberg Apple dodged paying billions in taxes, subcommittee says - CNET
註3 "Apple welcomes an objective examination of the U.S. corporate tax system, which has not kept pace with the advent of the digital age and the rapidly changing global economy," the company said in testimony released Monday.
註4 “Apple wasn’t satisfied with shifting its profits to a low-tax offshore tax haven,” said Senator Carl Levin, a Michigan Democrat who is chairman of the Senate Permanent Subcommittee on Investigations
註5 “Apple successfully 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.”
註6 John McCain of Arizona, who is the panel’s senior Republican, said: “Apple claims to be the largest U.S. corporate taxpayer, but by sheer size and scale, it is also among America’s largest tax avoiders."
註7 The company pointed to the "extraordinary" amount of corporate income taxes it pays―$6 billion in 2012―and said its U.S. effective federal cash tax rate was 30.5% last year, not much below the 35% statutory rate. "What they often leave out is the second part of the story, that Apple is one of the largest tax avoiders," said Sen. John McCain (R., Ariz.), who described Apple as the "most egregious offender" among U.S. corporations trying to avoid tax bills.
註8 "Despite reporting net income of $30 billion over the four-year period 2009 to 2012, Apple Operations International paid no corporate income taxes to any national government during that period," the report found.
註9 Over all, Apple’s tax avoidance efforts shifted at least $74 billion from the reach of the Internal Revenue Service between 2009 and 2012, the investigators said.
註10 While the company cited an effective rate of 24 to 32 percent in its disclosures, its effective tax rate was 20.1 percent, based on the committee’s findings. And for a company of Apple’s size, the resulting difference was substantial ― more than $8 billion in 2009, 2010 and 2011.
註11 Atop Apple’s offshore network is a subsidiary named Apple Operations International, which is incorporated in Ireland ― where Apple had negotiated a special corporate tax rate of 2 percent or less in recent years ― but keeps its bank accounts and records in the United States and holds board meetings in California.
註12 In 2011, another Ireland-based Apple unit, Apple Sales International, which sells iPhones, iPads MacBooks and other products to overseas distributors, recorded $22 billion in pretax earnings but paid just $10 million in taxes, investigators found. That works out to a rate of about .05%.
註13 The Senate panel's report focuses on Apple units in Cork, Ireland, where Apple has long based its operations for Europe, the Middle East, India, Africa, Asia and the Pacific. The units are beyond the reach of the Internal Revenue Service, which counts corporations as American if they are incorporated in the U.S. But Irish tax law only considers companies residents of the small European country if they are managed and controlled there, and Apple manages them from the U.S. The result: Apple pays little or no taxes to either country on much of its revenue earned outside the U.S., according to the report.
註14 But by officially locating them in places like Ireland, Apple was able to, in effect, make them stateless ― exempt from taxes, record-keeping laws and the need for the subsidiaries to even file tax returns anywhere in the world.
註15 Investigators have not accused Apple of breaking any laws and the company is hardly the only American multinational to face scrutiny for using complex corporate structures and tax havens to sidestep taxes.
註16 The sums amount to an estimated $1.9 trillion, according to an analysis by Audit Analytics, which reviewed filings from more than 1,000 companies in the Russell 3000 Index that report the figure.
註17 Because of these strategies, tax experts say, Washington is forced to rely more and heavily on payroll taxes and individual income taxes to finance the government’s operations. For example, in 2011, individual income taxes contributed $1.1 trillion to federal coffers, while corporate taxes added up to $181 billion.
註18 “If Apple had used its overseas cash to fund this return of capital, the funds would have been diminished by the very high corporate U.S. tax rate of 35 percent,” Mr. Cook is planning to testify, according to the prepared text. Apple “believes the current system, which applies industrial era concepts to a digital economy, actually undermines U.S. competitiveness.”