Tim Cook Calls Apple's Tax Avoidance Accusations 'Total Political Crap'

60 Minutes has shared a preview of Tim Cook's latest interview with journalist Charlie Rose, in which the Apple CEO emphatically counters the idea that Apple has created elaborate schemes to pay little or no U.S. corporate taxes on its overseas revenue.

Cook described the tax avoidance accusations as "total political crap," and deflected blame on the U.S. tax code for being far outdated. He added that repatriating the money in the U.S. is not "a reasonable thing to do" due to high corporate tax rates.

Rose: You also have more money overseas probably than any other American company. […] Why don’t you bring that home?

Cook: “It would cost me 40% to bring it home, and I don’t think that’s a reasonable thing to do. This is a tax code that was made for the industrial age, not the digital age. It’s backwards. It’s awful for America. It should have been fixed many years ago. It’s past time to get it done.”

Rose: Here’s what they concluded: “Apple is engaged in a sophisticated scheme to pay little or no corporate taxes on $74 billion in revenue held overseas.”

Cook: “That is total political crap. There is no truth behind it. Apple pays every tax dollar we owe."

Apple's tax policies have been closely investigated over the past few years in Europe. Earlier this year, for example, Italian regulators accused Apple of booking profits generated in the country through an Irish subsidiary in an effort to lower its taxable income base and save nearly 900 million euros from 2008 through 2013. The investigation was completed in March 2015.

The European Commission began an investigation of Apple's tax policies in June 2014, and the Brussels-based executive body formally accused the company of receiving illegal state aid from Ireland in September 2014. The commission has since requested more information from Apple, likely delaying a decision in the tax probe until at least after the Irish elections in early 2016.

Apple-EU
Apple is said to utilize multiple foreign subsidiaries in Ireland to move around overseas money, which Cook says accounts for two-thirds of Apple's revenue, without being subject to high corporate tax rates in the U.S. and elsewhere. Apple has consistently denied any wrongdoing, and Ireland vows to take the European Commission to court over any negative ruling.

Cook's wide-ranging interview will also touch upon encryption technology and manufacturing products in China. In the same episode, Rose will also offer a rare inside look at Jony Ive's "secret design studio" at Apple's headquarters in Cupertino, California. 60 Minutes airs on CBS this Sunday, December 20 at 7:30 p.m. Eastern Time and 7 p.m. Pacific Time.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All 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.

Top Rated Comments

(View all)
Avatar
62 months ago

It's also totally true.

And totally legal. Unfortunately, this is a problem created by Congress (both parties), not Apple.
Score: 72 Votes (Like | Disagree)
Avatar
62 months ago
-> Cook described the tax avoidance accusations as total political crap.

-> He added that repatriating the money is not reasonable due to high corporate tax rates.

Those claims contradict each other. Apple is either avoiding tax or it isn't!
Score: 71 Votes (Like | Disagree)
Avatar
62 months ago
If you take any deductions on your tax return, you've no grounds for complaining about Apple doing so.
Score: 65 Votes (Like | Disagree)
Avatar
62 months ago

-> Cook described the tax avoidance accusations as total political crap.

-> He added that repatriating the money is not reasonable due to high corporate tax rates.

Those claims contradict each other. Apple is either avoiding tax or it isn't!

No they don't. Don't be clueless.

The second statement refers to bringing the money they have over seas into the United States. They don't HAVE to do that. They are free to keep their money overseas right where it is. There is no Evasion going on here.

His problem with that is that it would cost him 40% of that money to bring it into the US because are tax system is such a total mess that we make companies pay taxes to bring money they made in other places into the country.

It should be FREE to do that. That money only benefits the country by being here instead of there.

The first comment regarding the tax avoidance issues are other matters and have nothing to do with the money they have in banks overseas.
Score: 59 Votes (Like | Disagree)
Avatar
62 months ago
Amazing how many feel entitled to the labors of others. I dare any of you to earn a fortune and then hand over 40% to the Fed when there are tax loopholes that will help you avoid it. It's unreasonable and you'd be daft not to exploit those loopholes. Any of you would do the same.
Score: 59 Votes (Like | Disagree)
Avatar
62 months ago
It's also totally true.
Score: 56 Votes (Like | Disagree)

Top Stories

Here's How You Can Download iOS 14 and iPadOS 14 Around the World [It's Out]

Wednesday September 16, 2020 2:36 am PDT by
Apple's official public release of iOS 14 and iPadOS 14 dropped on Wednesday, September 16, just a day after the company released the Golden Master to third-party developers. Also set to be made available to the general public for the first time are watchOS 7 and tvOS 14. Getting Started With iOS 14 Video Click image to watch iOS 14 Getting Started While that's left a lot of developers...

When Will the iPhone 12 Launch? Here's What We Know

Wednesday September 16, 2020 6:12 am PDT by
Yesterday's "Time Flies" Apple event saw the release of the Apple Watch Series 6, Apple Watch SE, iPad 8, and iPad Air 4, but no new iPhone models. Rumors before the event strongly alleged that it would not see the unveiling of new iPhones, with many reports pointing to an October launch. The lack of new iPhone models yesterday seems to confirm that the iPhone 12 lineup will not appear...

Apple Releases iOS 14 and iPadOS 14 With Home Screen Redesign, App Library, Compact UI, Translate App, Scribble Support, App Clips, and More

Wednesday September 16, 2020 12:48 pm PDT by
Apple has released iOS 14 and iPadOS 14, the newest operating system updates designed for the iPhone and iPad. As with all of Apple's software updates, iOS 14 and iPadOS 14 can be downloaded for free. iOS 14 is available on the iPhone 6s and later, while iPadOS 14 is available on the iPad Air 2 and later. The updates are available on all eligible devices over-the-air in the Settings app. To ...

Apple Releases Safari 14 for Mac Ahead of macOS Big Sur Launch

Wednesday September 16, 2020 1:40 pm PDT by
macOS Big Sur didn't launch alongside iOS 14, iPadOS 14, tvOS 14, and watchOS 7 today, with the update coming later this fall, but Apple did release the Safari 14 update for macOS Catalina and macOS Mojave users. Safari 14 brings improved performance, customizable start pages, a Privacy Report to see which cross-site trackers are being blocked, and a new tab bar design that provides tab...

Apple Updates AirPods 2 and AirPods Pro Firmware to Version 3A283

Monday September 14, 2020 11:24 am PDT by
Apple today released new 3A283 firmware updates for the second-generation AirPods and the AirPods Pro. The second-generation AirPods are being updated from the 2D15 firmware they were previously running, while the AirPods Pros are being updated from the 2D27 firmware they had installed previously. Apple does not provide details on what's included in refreshed firmware so we don't know what's ...

iOS 14 Picture in Picture No Longer Working With YouTube's Mobile Website in Safari [Without Premium]

Friday September 18, 2020 12:21 pm PDT by
Apple in iOS 14 added Picture in Picture to the iPhone, a feature designed to let you watch a video in a small screen on your device while you continue to do other things on the phone. When Picture in Picture was working with YouTube The YouTube app doesn't support Picture in Picture, but up until yesterday there was a functional workaround that allowed videos from YouTube.com to be watched...

Hands-On With the New Apple Watch Series 6 and Apple Watch SE

Friday September 18, 2020 1:19 pm PDT by
Today's the official launch date for the Apple Watch Series 6 and the Apple Watch SE, both of which Apple announced on Tuesday. We picked up a couple of the new models and thought we'd give them a quick look for MacRumors readers thinking of ordering a new watch. Apple Watch Series 6 & Apple Watch SE Hands-On! When it comes to design, both the $399 Series 6 and the $279 SE look just like...

iOS 14.2 Beta Adds New Shazam Music Recognition Feature for Control Center

Thursday September 17, 2020 3:36 pm PDT by
Apple today released the first beta of iOS 14.2 to developers for testing purposes, and the new update introduces a Music Recognition control for the Control Center. The new feature lets you discover music playing around you and it recognizes the music playing with in apps, even when you're wearing AirPods. Songs pop up as notifications, and you can tap to listen in Apple Music....

8 Third-Party Home Screen Widgets That You Can Try Out Now on iOS 14

Wednesday August 5, 2020 12:56 pm PDT by
One of the biggest new features of iOS 14 is Home Screen widgets, which provide information from apps at a glance. The widgets can be pinned to the Home Screen in various spots and sizes, allowing for many different layouts. When the iOS 14 beta was first released in June, widgets were limited to Apple's own apps like Calendar and Weather, but several third-party developers have begun to test ...

Apple Releases watchOS 7 With New Watch Faces, Family Setup, Sleep Tracking, Handwashing Help and More

Wednesday September 16, 2020 12:47 pm PDT by
Apple today released watchOS 7, the newest version of the watchOS operating system designed to run on modern Apple Watch models. The watchOS 7 update comes after several months of beta testing. ‌watchOS 7‌ can be downloaded for free through the dedicated Apple Watch app on the iPhone by going to General > Software Update. To install the new software, the Apple Watch needs to have at...