Apple has long been criticized for indulging in a number of tax avoidance practices. These practices essentially help Apple save billions of dollars which would otherwise go to the U.S. Treasury. Senate recently questioned Apple’s CEO, Tim Cook, over such practices and a whole range of other Apple-related issues.
What Apple does to accomplish tax avoidance is very legal, a fact that can’t be deputed. The company essentially stores its cash offshore so that it doesn’t have to pay hefty taxes levied in the U.S. While this is perfectly legal, the authorities as well as tax officials have criticized the company over it.
The hearing at Senate was a significant affair in that this is the first time such a high-level huddle has been brought together to question Apple about such practices. When asked why Apple would indulge in this, Tim Cook calmly responded to the senators that everything Apple does is above board.
However, he did concede that he would like to see comprehensive tax reform passed by the legislators this year. This may hint at Apple’s readiness to collaborate with the authorities and pay taxes over its actual cash once adequate tax reforms are in place.
Interestingly, during the course of the hearing, Senator John McCain asked Tim Cook, “I’m out of time but what I really wanted to ask was why the hell I have to keep updating apps on my iPhone all the time and why you don’t fix that.”
Cook was quick to respond that, “Sir, we try to make them better all the time.” Other senators generally expressed their appreciation for the quality products created by Apple.
Courtesy: PC Mag