Apple CEO Tim Cook has been summoned by the U.S. Senate Permanent Subcommittee on Investigations to testify on the company’s offshore tax practices. It is believed to have a horde of about $100 billion overseas, and that is money it does not have to pay the high American corporate tax rate on.
“The Subcommittee will continue its examination of the structures and methods employed by multinational corporations to shift profits offshore and how such activities are affected by the Internal Revenue Code and related regulations. Witnesses will include representatives from the Department of the Treasury, the Internal Revenue Service, representatives of a multinational corporation, and tax experts.”
The ongoing investigation has looked into several other companies like Microsoft and HP, both who which testified last September 12th.
However, Apple has been taking the most scrutiny recently after borrowing $17 billion in bonds to payback stock holders in cash. Apple didn’t tap any of its overseas funds and ended up saving the company an estimated $9.2 billion in taxes. If the money was ever repatriated in its entirety to America, Apple would have to pay roughly $13 billion in taxes on it.
Apple spokesperson Steve Dowling issued a comment to POLITICO, stating that the company continues to work with the committee and is one of the largest taxpayers in America “having paid $6 billion in federal corporate income tax in fiscal 2012.”
The hearing will occur on May 27th at 9:30 AM in the Dirksen Senate Office Building. It will be called “Offshore Profit Shifting and the U.S. Tax Code – Part 2”