Senate: Apple uses firms outside U.S. to avoid taxes
By The Associated Press
Published: Monday, May 20, 2013, 8:54 p.m.
WASHINGTON — Apple Inc. employs a group of affiliate companies outside the country to avoid paying billions of dollars in income taxes, a Senate investigation found.
The world's most valuable company is holding overseas $102 billion of its $145 billion in cash, and an Irish subsidiary that earned $22 billion in 2011 paid only $10 million in taxes, according to the report issued on Monday by the Senate Permanent Subcommittee on Investigations.
The strategies Apple uses are legal, and many other multinational corporations employ similar techniques to avoid paying income taxes on profits they reap overseas. But Apple uses a twist, the report found. The company's tactics raise questions about loopholes, lawmakers say.
Apple's top executives are scheduled to testify and explain the company's tax strategy at a hearing by the subcommittee on Tuesday.
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