The Top 10 Notable Quotes from Apple's Senate Statement
On Tuesday, Apple (NASDAQ: AAPL) CEO Tim Cook will testify before a Senate subcommittee.
According to Reuters, on Monday, the subcommittee released a 40 page memorandum that claims to have identified three Irish subsidiaries that have no tax residency in Ireland and have paid no corporate income taxes in the last five years.
In it’s prepared statement that will be read at the hearing on Tuesday, Apple CEO Tim Cook will address this and other accusations and make the case that Apple follows US tax laws, has created more than a half of a million jobs, and would pay more in US corporate taxes if US corporate tax law were to be simplified and updated.
Here are some of the notable quotes that you will hear in Cook’s testimony.
- “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.”
- “Apple welcomes an objective examination of the US corporate tax system, which has not kept pace with the advent of the digital age and the rapidly changing global economy.”
- “Apple is likely the largest corporate income tax payer in the US, having paid nearly $6 billion in taxes to the US Treasury in FY2012. These payments account for $1 in every $40 in corporate income tax the US Treasury collected last year. The Company’s FY2012 total US federal cash effective tax rate was approximately 30.5% .The Company expects to pay over $7 billion in taxes to the US Treasury in its current fiscal year.”
- “The company estimates that it has created or supported approximately 600,000 jobs for American workers.”
- “Approximately 61 percent of Apple’s revenue was derived from its international operations. International revenue accounted for about two-thirds of Apple’s revenue last quarter.”
- “…Apple relies on a network of foreign subsidiaries incorporated in countries around the world to perform a variety of functions…Several subsidiaries are incorporated in Ireland, where Apple began operations in 1980.”
- “Pursuant to US Treasury regulations. Apple Inc. properly uses a cost sharing agreement with two of its Irish subsidiaries to share the R&D costs of co-developing its innovative products. Apple’s cost sharing agreement was first put in place in 1980, when Apple had revenue of $117 million and the invention of the iPhone was decades into the future.”
- “Apple expects to return $100 billion to its shareholders in less than three years through a combination of share repurchases and dividends.”
- “Some observers have questioned Apple’s decision to fund part of its return of capital by issuing $17 billion in debt rather than repatriating some offshore funds. Apple respectfully suggests that any objective analysis will conclude the Company’s choice to issue debt, rather than repatriate foreign earnings, was in its shareholders’ best interest.”
- “Apple has recommend…and suggests to the Subcommittee today – to pass legislation that dramatically simplifies the US corporate tax system. Apple recognizes these and other improvements in the US corporate tax system may increase the Company’s taxes. Apple is no opposed to such a result…”
Disclosure: At the time of this writing, Tim Parker was long Apple and will be glued to theTV to watch the testimony.
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