“Apple Inc. has created a web of offshore entities to avoid paying billions of dollars in U.S. taxes, including three foreign subsidiaries the company says have no home country for tax purposes, congressional investigators say.
The world’s most valuable technology company has $102 billion in offshore accounts and shifted billions in profits out of the U.S. into affiliates, based in Ireland where it negotiated a tax rate of less than 2 percent, according to a report by the Senate Permanent Subcommittee on Investigations. The offshore entities of the Cupertino, Calif.-based company have paid little or no tax in recent years, the probe found.
One Apple affiliate – Apple Operations International – generated net income of $30 billion between 2009 and 2012, and declined to declare a tax residence, filed no corporate tax return and payed no income taxes to any nation, the report said. AOI is Apple’s principal offshore holding company.
“Apple wasn’t satisfied with shifting its profits to a low-tax offshore tax haven,” Democratic Senator Carl Levin of Michigan, the chairman of the panel, said in a prepared statement. “Apple 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.”
Release of the report comes in advance of a subcommittee hearing Tuesday, where Apple executives including Chief Executive Officer Tim Cook and Chief Financial Office Peter Oppenheimer are scheduled to testify. Cook’s appearance is unprecedented for Apple, whose co-founder and former CEO Steve Jobs never testified before Congress.
$6 Billion…”
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