Senator Rand Paul: U.S. Government Needs To “Look In The Mirror” Instead Of Critiquing Apple For Tax Evasion

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Apple executives are testifying before the U.S. Senate Subcommittee today on tax evasion practices, specifically on routing funds offshore to avoid the U.S. government’s 35% corporate tax rate. This is the highest single tax rate in the world, and Apple has avoided paying billions in U.S. taxes by storing more than two thirds of its $100+ billion cash hoard in countries like Ireland.

At the hearing, there are basically two camps: those attacking Apple for using “gimmicks” or loopholes that other multinational corporations take advantage of, and those defending Apple while pointing out the obvious need for reform in the corporate tax code.

While Michigan Senator Carl Levin and Arizona Senator John McCain fall in the first camp, Kentucky Senator Rand Paul is clearly in the second. He said that the Senate should be apologizing to Apple during the hearing today, noting that “the committee needs to look in the mirror and see who created this mess.”

Senator John McCain: Apple Is Cheating The U.S.A. In Taxes

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Senator John McCain just laid out his case against Apple in Washington D.C. in a Senate hearing about Apple’s tax rates, and he’s out for blood.

According to McCain, although 95% of Apple’s research and development happens in the USA, they funnel most of their profits through overseas entities that are not tax residents in any country in the world.

Ireland is a big target for McCain here. Ireland has long had liberal tax policies in an attempt to attract foreign companies, but McCain says that Apple paid less than $10 million in taxes on $22 billion in earnings in Ireland, a tax rate of less than 1.20th of 1%.

Apple To Be Grilled By U.S. Senate On “Extensive Tax-Avoidance Strategies” At Hearing Tomorrow

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Apple CEO Tim Cook is scheduled to appear before the U.S. Senate Permanent Subcommittee tomorrow as part of a probe into tax evasion strategies among American corporations. Apple released its official testimony for the hearing earlier today, noting that is is one of the biggest taxpayers in the country.

Among the witnesses tomorrow will be Apple executives, Democratic Senator Carl Levin of Michigan, Republican Senator John McCain of Arizona, and members of the Treasury Department. “The subcommittee will spotlight Apple’s extensive tax-avoidance strategies,” according to Levin.

Tim Cook Defends Apple’s Offshore Cash Hoard Before Senate Hearing

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From Tim Cook to Jony Ive,
From Tim Cook to Jony Ive,

Tim Cook is going to Washington to testify before a Senate committee next week, but the Apple CEO is pulling a rare move for the company and going on the offensive early by giving media interviews to explain its position.

During an interview with Politico, Cook addressed the controversy surrounding Apple’s cash hoard by explaining where its offshore cash comes from, how Apple plans to bring more manufacturing jobs back to the U.S., and why the company will push for policy change in Washington: 

Seven Reasons Business Travelers Need An iPhone Expense App

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Traveling for business? Don't forget to pack an expense tracker app.
Traveling for business? Don't forget to pack an expense tracker app.

Traveling for business is a lot different from taking a vacation. While you may get to experience far off cities, meet new people, and have some genuine fun on a business trip, you’ll also need to work, worry about delays that could make you miss critical meetings, ensure you leave your hotel room looking your most presentable, and keep track of every expense related to the trip.

Of those stress factors, tracking expenses so that you can submit them for reimbursement or explain charges you make to a company credit card may not seem the most stressful. The majority of the time it isn’t (unless you lose some big-ticket receipts or have unusual charges to justify). It is, however, often tedious drudgery that is prone to human error and mistakes.

There are many iOS expense tracking apps out there and there are some very good reasons to invest in one of them.

Phantom Tax Keeps Apple’s Financial Earnings Results From Being Much Higher [Report]

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Scads of overseas cash. That's a technical term.
Scads of overseas cash. That's a technical term.

We reported a few weeks ago that Apple had parked scads of cash overseas, some $74 billion in cash. Looking forward to tomorrow’s earnings report, however, it can be argued that their financial numbers could be much higher if the cash, mainly parked overseas due to potential tax liabilities in the US, were returned to US Apple coffers.

According to the Associated Press and reported by USA Today, Apple typically understates its profits when compared with other multinational corporations, due to this “phantom tax” liability, a tax they may never have to pay. Like many multinationals, Apple is counting on the US lowering tax rates in the near future, minimizing the amount of tax they’d end up owing if they brought that $74 billion home.

The Truth About Apple’s Taxes

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Apple's taxes due and tax rate for 2011 don't match reported numbers
Apple's taxes due and tax rate for 2011 don't match reported numbers

Earlier in this day, we reported on a New York Times piece in which the paper claimed that Apple was using a variety of measure to avoid paying U.S. income tax. It turns out that the Times based key pieces of its information on a study that had been discredited two weeks prior.

The data used by the Times included a report by the Greenlining Institute, which made errors in computing Apple’s supposed tax rate at 9.8% for the 2011. The data used by the report effectively compared Apple’s 2011 profit with taxes paid by the company for profits in 2010 and drew unfounded conclusions as a result.

Ruh Roh Sales Taxes May Make Some Mac App Store Deals Not So Great

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I’ve been exploring the Mac App Store and discovered another little tidbit that might pose a problem for some frugally minded people – like me. I was looking for apps that I already owned that might be in the App Store and I found one called RapidWeaver.

I was about to purchase it in the Mac App Store until I found out it would cost more to do so. Why did it cost more? The answer is simple – sales taxes and that is what led me to halt one Mac App Store application purchase this evening.