taxes

Apple to nearly double lobbying efforts on tax fight

Ed Sutherland ∙ May 24, 2013

Apple finds itself in unfamiliar territory. Accustom to acting behind the scenes and producing gadgets with overwhelming appeal, the iPhone maker and its CEO Tim Cook are front-and-center in a debate over corporate taxes and how some companies navigate loopholes in the laws to keep billions from the IRS.

In a sign of how concerned Apple is about changing the U.S. tax landscape, it in 2013 may spend nearly $4 million on lobbying Congress - double the amount of just a year ago. Meanwhile, European leaders are asking tech giants to play by the rules...

Jon Stewart on Apple’s Senate probe

Christian Zibreg ∙ May 23, 2013

Earlier this week, Apple's CEO Tim Cook came to Washington and escaped unscathed. The focus of media coverage has now seemingly moved away from Apple to the greater tactics some of the well-known corporations use to funnel their money using the world's tax havens - and perfectly legally, too.

But the hot topic isn't going away as the nearly bankrupt government seeks ways to tax hundreds of billions of dollars kept overseas. And per usual, the American political satirist and the Daily Show host Jon Stewart has jumped on the opportunity to exploit the controversy.

I don't want to spoil the fun for you, but he's asserting U.S. senators are Apple fanboys. The clip is right after the break...

EU examining tax evasion tricks by Apple, Google and Amazon

Ed Sutherland ∙ Updated January 26, 2016

More than $1 trillion leaked from the tax coffers of EU member states each year, an amount large enough to prompt European leaders Wednesday to hold a summit on reforming corporate taxes. The move follows high-profile investigations showing Apple and other tech giants used European countries to avoid paying taxes in their home countries.

Earlier this week, Apple CEO Tim Cook testified before a Senate subcommittee investigating how the iPhone maker used a hole in Ireland's tax laws to lower its U.S. tax burden on $74 billion held overseas...

Apple posts opening statements from Senate hearing on tax evasion

Christian Zibreg ∙ Updated January 28, 2019

Apple CEO Tim Cook, along with the company's finance boss Peter Oppenheimer and Tax Operations head Phillip Bullock, earlier this morning took the witness table at a congressional hearing on Capitol Hill to face U.S. senators who grilled the three men on Apple's offshore tax practices.

This also means today was the day many Apple bloggers got to become experts on tax reform. We live-blogged the whole thing, but if you had better things to do than sift through the back and forth between Apple execs and senators John McCain and Carl Levin, Apple's got you covered.

Right on cure, the Cupertino firm has published Cook and Oppenheimer’s opening statements that detail its now widely reported stance on a comprehensive U.S. corporate tax code reform...

Apple CEO Tim Cook takes the witness table at a congressional hearing on Capitol Hill

Christian Zibreg ∙ Updated January 28, 2019

Apple CEO Tim Cook, who has been summoned to testify in a Senate hearing on offshore tax practices, now has to do something no other Apple CEO did before him: take the witness table at a congressional hearing on Capitol Hill.

Apple ahead of the hearing published a 17-page written testimony which details its push for a fair tax reform: it should be revenue neutral, Apple writes, eliminate all corporate tax expenditures, lower corporate income tax rates and implement a reasonable tax on foreign earnings that allows free movement of capital back to the U.S.

It's not clear why the U.S. Senators singled out Apple as many other companies don't repatriate the money earned overseas due to the steep 35 percent tax. It's important to note that what Apple and others are doing isn't illegal. Moreover, Apple is compelled to do what is in both their and their shareholders' best interest.

Anyway, you've hopefully grabbed your popcorn because things are about to get quite interesting if not downright messy. Go past the fold for a blow by blow...

U.S. Senators respond to Apple’s tax avoidance strategy ahead of tomorrow’s hearing

Christian Zibreg ∙ Updated June 3, 2017

Tomorrow will be a pretty big day for Apple CEO Tim Cook, finance boss Peter Oppenheimer and Tax Operations head Phillip Bullock as the three men are scheduled to appear in front of the United States Senate Permanent Subcommittee on Investigation and give testimony regarding the company's creative approach to tax avoidance.

Apple ahead of the hearing published a lengthy document on its web site which pushes for tax reform on argument that America's tax system undermines the nation's competitiveness in the "digital economy" because the current tax code was written for the "industrial era." As expected, some U.S. senators beg to differ and think Apple is just being creative in its tax avoidance strategy.

This is bound to get more complicated when Tim Cook & Co. find themselves in hot water explaining to U.S. Senators how the company sidesteps U.S. taxes. Get your popcorn out...

Apple issues statement on corporate tax policy ahead of senate hearing

Cody Lee ∙ Updated June 3, 2017

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...

Tim Cook defends Apple’s offshore tax practices ahead of senate hearing

Cody Lee ∙ May 16, 2013

Yesterday, word got out that Tim Cook would be testifying at a senate hearing next week over Apple's tax practices. The hearing was called after the iPad-maker took on billions in debt to fund its shareholder return plan, rather than paying taxes on its offshore cash.

The move reportedly saved the Cupertino company around $9 billion in various tax charges, bringing it to the forefront of an ongoing debate about the legality of offshore tax evasion. But in a recent interview, Tim Cook says that Apple isn't doing anything wrong...

Tim Cook expected to testify in Senate hearing on offshore tax practices next week

Cody Lee ∙ May 15, 2013

In a recent bond offering, Apple took on billions of dollars in debt in order to finance an initiative to return some of its cash to shareholders. Its plan is to give $100 billion back to investors, by way of dividends and stock buybacks, by 2015.

Since most of its cash is offshore, Apple's decision to take on debt instead of tapping its own $150 billion cash pile helped it sidestep an estimated $9 billion in taxes. Unfortunately, it's also caught the attention of the US government...

Why Apple is borrowing money to pay for $60B stock buyback

Ed Sutherland ∙ April 26, 2013

To bolster its stock in the eyes of investors, Apple recently announced it would buy back $60 billion worth of shares. Such a move makes sense - after all, the iPhone maker does have this cash hoard of nearly $150 billion. However, it turns out Apple won't touch that money, opting instead to borrow the funds.

By borrowing the money, Apple keeps its billions out of the reach of U.S. taxes, saving the corporate giant money while also retiring expensive stock dividends.

You didn't think there was any altruism involved, did you? The move, however, isn't without its pitfalls. Moreover, Apple isn't alone in a corporate game of chess where it's all about manipulating the tax code, according to a report Friday...

Despite workarounds, Apple still paid $6 billion in U.S. taxes last year

Cody Lee ∙ January 5, 2013

Earlier this year, The New York Times wrote a piece on the different methods Apple uses to sidestep "billions in corporate taxes." Like other articles in the publication's iEconomy series, it painted the Cupertino company in a not-so-favorable light.

But despite the workarounds, Apple says it still pays a significant amount in income taxes. According to a recent statement, it paid over $6 billion in US taxes during its fiscal 2012, accounting for $1 out of every $40 collected from corporations...

Why did Apple’s recently-minted hardware boss cash in $11M in stock?

Christian Zibreg ∙ Updated July 12, 2017

Dan Riccio, Apple's recently promoted Senior Vice President of Hardware Engineering, sold 20,726 shares of stock in the last two days. The transaction netted him a cool $10.7 million, with a thousand shares worth approximately half a million going to an unnamed charity. That another SVP of Apple is unloading shares (though he didn't touch his stock options) doesn't mean he's potentially being fired, as some critics have jokingly speculated...