Apple’s Web of Tax Shelters Saved It Billions

Apple's CEO Tim Cook is going to testify before Congress today about corporate taxes. The prepared remarks have already been released and members of Congress have already been talking about it.

The NY Times writes Apple’s Web of Tax Shelters Saved It Billions, Panel Finds "Even as Apple became the nation’s most profitable technology company, it avoided billions in taxes in the United States and around the world through a web of subsidiaries so complex it spanned continents and went beyond anything most experts had ever seen, Congressional investigators disclosed on Monday."

There's a little interactive feature detailing the structure and WonkBlog has some more How to make $30 billion and pay no corporate income tax, the Apple way.

I don't think this is the Double Irish arrangement we heard about a year ago but it's similar in that it uses Ireland to avoid taxes (maybe it's a Single Irish :).

In the prepared testimony (pdf) Apple says "Apple supports comprehensive reform of the US corporate tax system. The Company supports a dramatic simplification of the corporate tax system that is revenue neutral, eliminates all tax expenditures, lowers tax rates and implements a reasonable tax on foreign earnings that allows free movement of capital back to the US. Apple believes such comprehensive reform would stimulate economic growth. Apple supports this plan even though it would likely result in Apple paying more US corporate tax."

Now where have I heard something like that before? Remarks by the President in State of Union Address in 2011. "For example, over the years, a parade of lobbyists has rigged the tax code to benefit particular companies and industries. Those with accountants or lawyers to work the system can end up paying no taxes at all. But all the rest are hit with one of the highest corporate tax rates in the world. It makes no sense, and it has to change. So tonight, I’m asking Democrats and Republicans to simplify the system. Get rid of the loopholes. Level the playing field. And use the savings to lower the corporate tax rate for the first time in 25 years –- without adding to our deficit. It can be done."