Ahead of Tim Cook’s appearance in front of the US Senate Permanent Subcommittee on Investigation tomorrow, Apple has released a lengthy statement regarding its company tax practices and other items that will be used in its testimony.
Remember, last week we told you that Cook was expected to testify at a senate hearing this Tuesday on “offshore profit shifting,” following Apple’s move to take on domestic debt, rather than use its offshore cash, to avoid $9 billion in taxes…
The 17-page document includes extensive details about the company’s history, its corporate structure, and its tax practices.
“Apple, a California company, employs tens of thousands of Americans, creates revolutionary products that improve the lives of tens of millions of Americans, and pays billions of dollars annually to the US Treasury in corporate income and payroll taxes. Apple’s shareholders – from individuals and institutions to pension funds and public employee retirement systems – have benefitted from the Company’s success through the appreciation of its stock price and generous dividends. Apple safeguards the capital entrusted to it by its shareholders with prudent management that reflects the Company’s extensive international operations. “
Apple iterates that it complies fully with both the rules and spirit of the tax laws, and that it pays all its required taxes—both in this country and abroad. In fact, the company says it’s likely the largest US corporate income tax payer, paying $6B in 2012.
The release also features a corporate tax reform proposal that Apple intends to share with the panel tomorrow:
“While some Subcommittee members may have differing views on these tax policy matters, Apple hopes the Subcommittee will see that these recommendations aim to create meaningful change and go well beyond what most US companies propose. As both a pioneer and participant in the American innovation economy, Apple looks forward to working with the Subcommittee on its efforts to encourage comprehensive reform of the US corporate tax system. Apple appreciates the opportunity to appear before the Subcommittee to contribute constructively to this important debate.”
The hearing is set to start at 9:30 tomorrow morning, and is in Room 106 of the Dirksen Senate Office Building. And in addition to Tim Cook, Apple’s CFO Peter Oppenheimer and head tax guy Phillip A. Bullock are expected to make appearances.