tax - page 4

Tim Cook survived his grilling during his appearance before the U.S. Senate Sub-Committee Hearing to Examine Offshore Profit Shifting and Tax Avoidance by Apple Inc. Even though some of the senators still aren’t happy with Apple’s international tax practices, a solution to the problem wasn’t given.

Not one to pass up the opportunity to make fun of senators, John Stewart broke down the Senate hearing on his show last night and jokingly proposed the U.S. create the ‘Tax Code Nano.’ The entire bit is pretty hilarious, you can watch it below:

Apple CEO Tim Cook and CFO Peter Oppenheimer are in Washington D.C. this morning to talk to a Senate subcommittee about Apple’s off-shore cash hoard. The Apple execs are expected to face a lot of heat surrounding Apple’s Irish subsidiary, through which Apple has funneled 64% of its earnings without paying any tax, yet has zero employees.

Before the hearing got underway though, Ireland’s deputy prime minister, Eamon Gilmore, issued a public statement which claimed Ireland isn’t to blame for Apple’s low tax bill, even though the country has become a tax haven for multinationals since the 1960s.

Apple CEO Tim Cook is scheduled to appear before a Senate committee tomorrow morning to talk about Apple’s off-shore cash that’s now worth over $100 billion. Last week, Cook stated that his company believes the entire U.S. corporate tax system needs to be overhauled to encourage companies like Apple to bring earnings from overseas back to the U.S.

This afternoon Apple published its testimony before the Permanent Subcommittee on Investigations, that contained a wish-list for the type of comprehensive corporate tax reform it thinks would be best for the U.S. tax system. Following the company’s ethos to believe in the simple, not the complex, Apple’s tax-wish list would dramatically simplify the U.S. corporate tax system.

In its testimony, Apple states that the comprehensive reform should have the following traits:

Apple just sidestepped a $9.2 billion tax bill by financing part of a $55 billion stock buyback with debt rather than using its offshore cash. The sneaky trick means the U.S. government is unable to bill the Cupertino company for tax on the deal, which is said to be the “the biggest corporate offering on record,” according to Bloomberg.

During the fiscal year of 2012, Apple made more money than ever before and became the world’s most valuable company. But they also managed to pay only 1.9% of income tax on earnings outside of the U.S.  Of the $36.8 billion Apple earned outside the U.S. Apple only paid $713 million in taxes.

Some may see those numbers and cry foul, but Apple hasn’t done anything illegal. Like a lot of other Fortune 500 companies, Apple keeps their international profits stashed somewhere outside the U.S. rather than having to pay a heavy tax rate for bring that cash back to America. The strategy saves Apple billions on their tax bill, but it also limits what they can do with those profits.

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.

Over the weekend, the New York Times ran another in its series of exposes about Apple. This one focused on Apple’s complex mix of offices and subsidiaries located throughout the world and the U.S. that allow the company to keep large portions of its more than $100 billion in low-tax states and countries.

The report comes after the paper’s expose on working conditions within Foxconn, the contractor that Apple uses to assemble most of its products and calls by politicians and members of the media for Apple to move more of its manufacturing and money to American soil.

Brazil’s Jundiai city council has paid tribute to Apple’s late co-founder and former CEO by naming one of its streets Steve Jobs Avenue. The council actually announced that it would commemorate Steve with a street a day after his passing last year, but city officials only confirmed the name this week.

Apple has been accused of avoiding paying a proper amount of taxes in the U.K. after making an incredible £6 billion in the last financial year, but paying only £10 million in tax. The Cupertino company runs what is described as a “significant operation” in Cork, Ireland, where tax rates are almost half those paid in the U.K.

For the widow of Apple co-founder Steve Jobs, the saying about death and taxes being life’s only certainty probably rings true — particularly taxes. Laurene Powell Jobs learned she must pay $867 million in capital gains taxes and is being advised to unload millions of Disney and Apple shares worth nearly $7 billion.

Don’t look for the Occupy movement to picket Apple. The iPhone maker is among just a few tech companies paying their fair share of corporate taxes. According to a report released Thursday, Apple paid a 31 percent tax rate. By comparison, the likes of HP, Yahoo and Amazon.com appeared to have paid less than half the 35 percent corporate rate — or even lower.

Following the incredibly successful launch of the iPad 2 in the U.S., it seems that once again Apple is struggling to meet the demand for its highly sought-after tablet, and this could mean dreaded delays for international launch dates. If the iPad 2 doesn’t arrive on time in your country and you’re keen to get your mitts on the latest device soon, here are four ways of getting one imported from the U.S.