Tue May 21, 2013
Senator Rand Paul Defends Apple Against Tax Evasion Charges
Republican U.S. Senator Rand Paul of Kentucky blasted Democratic lawmakers for calling on Apple Inc.'s chief executive to testify over moving assets offshore to avoid taxes.
Apple CEO Tim Cook was called to testify before a Senate panel on Tuesday over claims the technology company is exploiting loopholes to avoid paying billions of dollars in taxes.
A report compiled by the Senate Permanent Subcommittee on Investigations found Apple is holding around $102 billion of its $145 billion in profits overseas while using technicalities to avoid any levies.
U.S. law says because the companies are incorporated in Ireland, they aren't required to pay U.S. tax. But Irish law says the companies are controlled by Apple in the U.S., so that's where they should be taxed. The bottom line is the Apple subsidiaries pay very little tax at all despite billions in earnings.
During the committee hearing, Paul scolded colleagues for questioning Apple's motives and said lawmakers should instead be voting to lower the corporate taxes.
"I am offended by the spectacle of dragging in here executives from Apple using the brute force of government to bully a great success story. To the U.S. Senate: I say, instead of Apple executives, you should have brought in a giant mirror if you want to see who is responsible," he said.
Cook has defended his company's practices, arguing they pay an extraordinary amount in taxes.
But Senate Democrats say the company is utilizing Ireland as a haven while trying to find the 'Holy Grail' of tax avoidance.
Paul's office has released a video of his defense of Apple.