CEO Tim Cook dismisses talk of Apple dodging taxes as ‘political crap’

23 Dec 2015 | Author: | No comments yet »

Apple’s Tim Cook fills key role he once played for Steve Jobs.

Cook’s remarks, made on CBS’ 60 Minutes show, come amid a debate in the United States over corporations avoiding taxes through techniques such as so-called inversion deals, where a company redomiciles its tax base to another country. SAN FRANCISCO: Apple chief Tim Cook emphatically rejected accusations that the world’s richest company is sidestepping US taxes by keeping bundles of cash overseas, suggesting that the claim was politically motivated.

Apple Chief Executive Officer Tim Cook, on CBS’s 60 Minutes to be aired on December 20, slammed the governments for considering weaking encryption to add a back door as a solution to prevent attacks, reported Bloomberg.SAN FRANCISCO/BENGALURU — Apple Inc Chief Executive Tim Cook dismissed as “total political crap” the notion that the tech giant was avoiding taxes.

Cook on Thursday announced that Jeff Williams will be promoted to the position of chief operations officer, a job that has been vacant since Cook became Apple’s CEO in 2011. The Senate Permanent Subcommittee on Investigations probed Apple’s tax strategies and found that Apple in 2012 alone avoided paying US$9 billion in US taxes, using a strategy involving three offshore units with no discernible tax home, or “residence”. The appointment was part of several management changes at the world’s most valuable company, including the elevation of a top engineer who has been in charge of designing chips that are at the heart of the iPhone and iPad.

Apple holds US$181.1 billion in offshore profits, more than any other US company, and would owe an estimated US$59.2 billion in taxes if it tried to bring the money back to the US, a recent study based on SEC filings showed. Rebecca Lester, assistant professor of accounting at the Stanford Graduate School of Business, thought Cook’s colorful language might reflect frustration about the lack of movement on tax reform in Washington. “Companies and the government are in a game of chicken, waiting to see which one moves first,” she said. The empassioned response from Cook followed Rose contending that many members of Congress believe Apple is perpetuating a scheme to pay little or no taxes on $74 billion (RM317 billion) in overseas revenue.

Williams also vets potential acquisitions, coordinates with Foxconn Technology Group and other manufacturers, and oversees the logistics needed to get millions of devices from Asian factories to stores around the world. It comes a year after the “LuxLeaks” revelations that some of the world’s biggest companies – also including Pepsi and Ikea – had lowered their tax rates to as little as one percent in secret pacts with tax authorities in Luxembourg.

US President Barack Obama, Chinese leader Xi Jinping and Britain’s Prime Minister David Cameron joined fellow leaders in endorsing a clampdown drawn up by the wealthy nations’ Organisation for Economic Cooperation and Development. The OECD calculates that national governments lose $100-240 billion, or 4-10% of global tax revenues, every year because of the tax-minimizing schemes of multinationals. We should have both.” After Edward Snowden blew the whistle on government run programmes to spy on its own citizens, companies that provide messaging apps have made their encryption standards more robust.

Williams has been called “Tim Cook’s Tim Cook.” As part of the management shuffle, Johny Srouji was promoted to senior vice president for hardware technologies, and Phil Schiller, senior vice president of worldwide marketing, will take on leadership of the App Store, the company said in a statement. Its 15-point plan, adopted after years of negotiations, seeks to oblige multinationals to pay tax in the country where their main business activity is based. – AFP Apple saves billions of dollars in taxes through subsidiaries in Ireland, where it declares much of its overseas profit. “Apple pays every tax dollar we owe,” Cook told 60 Minutes’ Charlie Rose, according to excerpts from the interview released on Friday.

Apple has been investing heavily in semiconductors and unlike many other handset makers, it designs its own chips instead of buying whatever the latest product is from outside suppliers. Apple declined to comment on succession, but has said in the past that it has a plan in place and that different members of its executive team could step in. “These strategic moves fit like a glove as Apple needed to fill the COO vacancy heading into a pivotal 2016,” said Daniel Ives, managing director at FBR Capital Markets. “They really need to boost that bench behind Cook.” The appointments come at a critical time for Apple.

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