Tim Cook Speaks Out Ahead Of Senate Hearing On Apple's Offshore Tax Practices
May 17, 2013
As reported yesterday, Apple is set to be the target of a Senate hearing next week, and Apple CEO Tim Cook is poised to testify in defense of the company. Ahead of the hearing, Cook has granted rare interviews with D.C. reporters, including Politico and The Washington Post.
"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," Cook said in his interview with Politico, which first reported on his appearance at the congressional hearing.
The hearing is part of a congressional inquiry that investigates certain tax practices by companies such as Apple and how these practices impact the nation's tax code. These practices are said to be carried out by companies in allocating profits overseas so as to avoid high domestic taxes in the U.S.
But Cook is quick to defend Apple's actions. "I can tell you unequivocally Apple does not funnel its domestic profits overseas," Cook said. "We don't do that. We pay taxes on all the products we sell in the U.S., and we pay every dollar that we owe. And so I'd like to be really clear on that."
He also pointed out that "Apple is contributing in a lot of different ways to the economy."
For instance, Apple is one of the top taxpayers in the U.S. In fiscal 2012, it paid $6 billion in federal corporate income taxes. And this year, it's expected to pay a billion more.
Another case in support of Apple is that it helps create thousands of jobs in the U.S. by keeping its R&D in California and by creating products like the iPhone, iPad, and the App Store, which has paid out billions of dollars in royalties to developers.
The company has also been investing in domestic manufacturing as it expects to begin its "Made in U.S.A." Mac line later this year.
"I hope to make some clear recommendations, and I trust there will be receptive parties there," Cook said of the upcoming hearing.
He echoed this sentiment in a separate interview with The Washington Post, in which he said that he plans to propose a "dramatic simplification" of corporate tax laws.