A day before Apple CEO Tim Cook and CFO Peter Oppenheimer are scheduled to speak in front of the U.S. Senate Permanent Subcommittee on Investigation, the Cupertino-based company released a statement defending its status as a job creator in America and denying earlier claims that the company exploited tax loopholes or “gimmicks.”
Apple, a California company, employs tens of thousands of Americans, creates revolutionary products that improve the lives of tens of millions of Americans, and pays billions of dollars annually to the US Treasury in corporate income and payroll taxes… Apple safeguards the capital entrusted to it by its shareholders with prudent management that reflects the Company’s extensive international operations. Apple complies fully with both the laws and spirit of the laws. And Apple pays all its required taxes, both in this country and abroad.
Throughout the 17-page PDF document Apple repeats that the company’s financial activities have always been both completely legal and in the best interest of shareholders. Recently, Apple has pressured Congress to push through corporate tax reform that would close loopholes, and simplify the complex system currently in place. The move triggered a report from the NYTimes investigating “How Apple Sidesteps Billions in Taxes,” in an article published last month.
Apple’s document notes that the company’s suggested tax reform could actually increase corporate taxes for the company. The PDF also covers the tech giant’s turbulent history, and details both corporate structure and internal tax practices. Among other things, we learn that Apple paid the government $1.3 billion in sales and use tax payments for 2012, as well as another $830 million in state income tax payments and $327 million going to contributions and employee salaries.
The document also details Apple’s foreign subsidiaries and financial activities, and strongly denies any allegations that the company offices in Ireland have been used to cheat the U.S. Government out of taxes. However, the document does not address the NYTimes claim that a small office in Reno, Nevada was established to take advantage of the state’s zero percent corporate tax rate. The document only mentions Nevada once, noting that Apple’s offices there reflect “Apple’s strong commitment to the environment.”
It’s unclear whether Apple’s own corporate tax practices will be discussed on May 21st, but either way we’ll be sure to cover the depositions from Cook and Oppenheimer, which begin at 9:30 a.m. Eastern time.