U.S. Senators Claim Apple Has Avoided Paying Billions in U.S. Income Taxes Ahead of Tim Cook Testimony
A Senate subcommittee has released a 40-page memo accusing Apple of not paying billions of dollars in federal taxes through "extensive tax-avoidance strategies".
Apple CEO Tim Cook, CFO Peter Oppenheimer, and Apple's head of tax operations Phillip A. Bullock will appear in front of the U.S. Senate Permanent Subcommittee on Investigation tomorrow. The company issued a statement earlier today in a preliminary defense against the Subcommittee's accusations.
The subcommittee, which previously explored tax avoidance by other multinational corporations using offshore subsidiaries, found similar practices at Apple. In addition, the subcommittee review discovered an unusual tax scheme: Apple’s claim that two key offshore companies are not tax residents of Ireland, where they are incorporated, or of the United States, where Apple executives manage and control the companies. One of those Irish subsidiaries has paid no income taxes to any national tax authority for the past five years.
"Apple wasn’t satisfied with shifting its profits to a low-tax offshore tax haven," said Sen. Levin. "Apple sought the Holy Grail of tax avoidance. It has created offshore entities holding tens of billions of dollars, while claiming to be tax resident nowhere. We intend to highlight that gimmick and other Apple offshore tax avoidance tactics so that American working families who pay their share of taxes understand how offshore tax loopholes raise their tax burden, add to the federal deficit and ought to be closed."
The full forty-page memorandum (PDF) goes into some detail on the company's tax strategies, and we will likely hear much more about this at tomorrow's hearing.
Note: Due to the political nature of the discussion regarding this topic, the comment thread is located in our Politics, Religion, Social Issues forum. All MacRumors forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.
Popular Stories
iOS 26 was released last month, but the software train never stops, and iOS 26.1 beta testing is already underway. So far, iOS 26.1 makes both Apple Intelligence and Live Translation on compatible AirPods available in additional languages, and it includes some other minor changes across Apple Music, Calendar, Photos, and Safari.
More features and changes will follow in future versions,...
Apple is entering its most significant leadership transition in more than a decade as multiple senior executives prepare to depart and CEO Tim Cook begins to shape the company's next generation of leaders, according to Bloomberg's Mark Gurman.
In the latest edition of his "Power On" newsletter, Gurman explained that Jeff Williams, who was viewed as Cook's potential successor for several...
With the second beta of iOS 26.1, Apple updated the design of alarms set on the iPhone, making them harder to dismiss than before.
Stopping an alarm in iOS 26.1 beta 2 requires a new Slide to Stop gesture rather than a simple tap. You can continue to tap to snooze an alarm, but if you want to turn it off entirely, you need to use a swipe.
Transitioning from a tap to a slide gesture to...
Apple's website offers a list of nearly 200 new features and changes (PDF file) included in the software update, released last month.
Apple also shared equivalent lists for iPadOS 26 and macOS Tahoe.
iOS 26 is compatible with the iPhone 11 and newer. To install the update, open the Settings app on your iPhone, tap on General, and tap on Software Update.
Below, we have highlighted eight ...
A new iPad mini is "absolutely" on the way, according to Bloomberg's Mark Gurman. So what should we expect from the successor to the iPad mini 7 that Apple released a year ago?
Processor and Performance
Apple is working on a next-generation version of the iPad mini (codename J510/J511) that features the A19 Pro chip, according to information found in code that Apple mistakenly shared in...
After launching new iPhones last month, Apple is promoting iCloud+ with a prominent banner on its home page, in a bid to boost its services revenue. In addition to more storage, all iCloud+ plans include five perks for iPhone users.
As a refresher, iCloud includes 5GB of storage for free. If you want extra storage, you need to subscribe to an iCloud+ plan. In the United States, prices range...
Apple released the second beta of iOS 26.1 and iPadOS 26.1, introducing useful changes to alarms, multitasking on the iPad, and more. There are also subtle tweaks to some of the Liquid Glass design elements as Apple continues to refine iOS 26.
Alarms and Timers
Alarms set using the Clock app now have a slide to stop button rather than a tap to stop button on the Lock Screen. To snooze an...
Apple today released new firmware designed for the AirPods Pro 3, prior-generation AirPods Pro 2, and the AirPods 4 models. The firmware has a build number of 8A358, up from 8A356.
There's no word on what's include in the updated firmware, but the prior 8A356 update added iOS 26 features to the AirPods Pro 2, AirPods Pro 3, and AirPods 4 with ANC. The software introduced better audio quality ...
On the latest episode of The Verge's Decoder podcast, Rivian CEO RJ Scaringe told guest host Joanna Stern why the EV maker continues to pass on Apple's CarPlay — both the standard version and the more advanced CarPlay Ultra.
Echoing his previous comments on the matter, Scaringe said Rivian is focused on offering a "seamless digital experience," where customers do not need to switch between...
The next iPad Pro models are rumored to feature two key upgrades, including Apple's M5 chip, and an increased minimum of 12GB of RAM.
Last week, apparent unboxing videos for the next-generation 13-inch iPad Pro were uploaded to YouTube by Russian channels Wylsacom and Romancev768.
The same YouTube channels leaked the 14-inch MacBook Pro with the M4 chip before it was announced by Apple...
