The Irish company had built up skills and expertise relevant to the European and international markets, said Cook, and was vital to Apple’s operations.
Almost in the same breath, however, he explained that it was nothing more than a holding com- pany whose function was to handle sales revenue ‘on which we already paid taxes’.
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Much of the hearing revolved around Apple’s use of three subsidiaries based in Ireland but not ‘resident’ in any country for honestly speaking I don’t see it as unfair, lam notan unfair person so I wouldn’t preside over that’ tax purposes, a concept several senators made a point of failing to understand.
One of those subsidiaries, Apple Operations In- ternational (AOI), had bn allocated to it over the last five years, but hadn’t filed a single tax return in that time, confirmed Apple’s head of tax, Phillip Bullock.
Letters and feedback [email protected] (please indicate if not for publication) Press releases and news stories [email protected] Technical queries for publication [email protected] Phone (advertising and administration) 020 7907 6000 F? RELIABILITY Your website data is stored simultaneously in two geographically separate high-performance 1&1 Data Centres, with automatic daily back-ups included. Visit for full offer details, terms and conditions. Windows is a registered trademark of Microsoft® Corporation. Mac User 28 days ‘We pay all the taxes we owe - every single dollar’ 8 MACUSER JULY 2013 ‘This dramatic reshaping of copyright law will / have huge ramifications for photographers’ 70 \ apple’s tim cook was grilled by a commit- tee of US senators in May over allegations that the company had ‘sought the Holy Grail of tax avoidance.’ The CEO, who took over the post from Steve Jobs in August 2011, was called in by the permanent subcommittee on investigations, chaired by Democrat Carl Levin, to explain the international structures that enabled the highly profitable maker of the i Phone and i Pad to pay less than a bil- lion dollars in tax outside the US last year, despite amassing more than 0bn in cash even after paying out billions in dividends.
Asked whether the company’s behaviour was fair, Cook replied: ‘Honestly speaking I don’t see it as unfair. so I wouldn’t preside over that.’ And he insisted: ‘We pay all the taxes we owe - every single dollar.’ But senator John Mc Cain said that, despite ‘the admiration we hold for Apple’, it was ‘completely outra- geous’ that the company had avoided paying taxes on what he said was bn of income over the past six years.
Citing double taxation is a typical apologia for tax avoidance arrangements, though in reality more than one tax is routinely paid on the same income.