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Cook speaks ahead of upcoming US Senate testimony

updated 05:10 pm EDT, Thu May 16, 2013

'Apple does not funnel its domestic profits overseas'

Ahead of the Apple CEO's US Senate testimony, Tim Cook has replied to questions about politics and Apple's offshore tax practices in a new Politico interview. "We don't have a large presence in Washington, as you probably know, but we care deeply about public policy and believe creative policy can be a huge catalyst for a better society and a stronger economy," he says.

"I can tell you unequivocally Apple does not funnel its domestic profits overseas.We don't do that.We pay taxes on all the products we sell in the US, and we pay every dollar that we owe. And so I'd like to be really clear on that," he adds regarding potential Senate criticism of Apple's offshore cash. About his upcoming testimony, he says he hopes to "make some clear recommendations," and that he trusts there will be "receptive parties there."

Apple has about $100 billion offshore, which it has refused to repatriate unless it can pay less than the standard 35 percent tax rate, arguing that they have been taxed locally on those sales once already. To that end, Apple and other similarly-minded businesses have pressured US politicians for a temporary "tax holiday." To avoid paying taxes, Apple has even gone to the extent of putting up a $17 billion bond sale to fund a cash return program for shareholders.

In the interview, Cook also repeats other talking points, such as a $100 million plan to bring some Mac production back to the US, and a claim that Apple is one of the biggest taxpayers in the US. Cook says the company owes about $6 billion for 2012, and expects to pay another $7 billion by the end of its 2013 fiscal year. As for Mac production, he comments that parts will come from Arizona, Florida, Illinois, Kentucky, and Texas, and go into an existing Mac model, rather than a new brand.



By Electronista Staff
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  1. mac_in_tosh

    Junior Member

    Joined: 12-14-11

    I think I'll petition my Congressmen for a temporary tax holiday.

  1. Spheric Harlot

    Clinically Insane

    Joined: 11-07-99

    Originally Posted by mac_in_toshView Post

    I think I'll petition my Congressmen for a temporary tax holiday.



    If your income has already been taxed, you have a point.

    If not: How would you like to work overseas, have your income be taxed according to local laws, and then pay an ADDITIONAL tax on everything you own when you return to wherever you live?

    Seem like a great idea?

  1. Flying Meat

    Dedicated MacNNer

    Joined: 01-25-07

    Perhaps you'd like to have your office in a location among the lowest taxing places, perform most of your work and provide products to other locations with higher tax rates, yet only pay the lower tax rate becuase of your office location?

  1. Flying Meat

    Dedicated MacNNer

    Joined: 01-25-07

    Perhaps you'd like to have your office in a location among the lowest taxing places, perform most of your work and provide products to other locations with higher tax rates, yet only pay the lower tax rate because of your office location?

  1. Flying Meat

    Dedicated MacNNer

    Joined: 01-25-07

    D'oh! I hate it when that happens. :P

  1. Spheric Harlot

    Clinically Insane

    Joined: 11-07-99

    Originally Posted by Flying MeatView Post

    Perhaps you'd like to have your office in a location among the lowest taxing places, perform most of your work and provide products to other locations with higher tax rates, yet only pay the lower tax rate because of your office location?



    Perhaps I would.

    If I could, I'd certainly take advantage of it. You wouldn't?

    As it is, it is my understanding that the money that's not in the United States was not EARNED in the United States.

  1. Flying Meat

    Dedicated MacNNer

    Joined: 01-25-07

    Wouldn't I?
    Maybe. Maybe not. It depends on what is available to me, and lower taxes isn't generally going to be my primary criteria.

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