The SEC Closes The Book On Apple's Tax Filing Practices
October 7, 2013
Earlier this year, U.S. government officials claimed that Apple was deliberately keeping cash offshore to avoid paying taxes. Now, the Securities and Exchange Commission (SEC) has cleared the company of any wrongdoing, according to AllThingsD.
In news that will probably make some on Capital Hill unhappy, the SEC notes that it would take no action against Apple at this time. This decision comes after a four-month investigation of the company.
As AllThingsD notes:
Evidently, there’s no need to, as the agency has found Apple’s disclosures to be sufficient, particularly now that it has agreed to provide investors with more information about its foreign cash, tax policies, and plans for reinvestment of foreign earnings.In May, Apple CEO Tim Cook defended his company at a congressional inquiry that was investigating certain tax practices of public companies. Some legislators claimed that Apple deliberately allocated profits overseas to avoid high domestic taxes in the U.S. Cook was quick to defend Apple’s actions, and proposed that comprehensive reform of corporate tax laws was necessary. “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.” The CEO proposed that instead of going after companies, a comprehensive reform of corporate tax laws was necessary. The SEC ruling probably ends the finger pointing. Whether it leads to the tax reform Cook was promoting remains to be seen.