Apple: a little too effective tax optimization for the Senate ... - Generation NT

choice to borrow money rather than his own money to ensure the promised repayment to its shareholders without having to mobilize its resources abroad already said a lot about tax optimization methods Apple which to pay very little tax in respect of its business, both in the countries where the company operates and the United States.

involving foreign subsidiaries mounted in countries with tax advantages, the group of Cupertino exposes very little capital taxable in the United States. If the methods are not per se illegal, the IRS was still hard to see it in his face tens of billions of dollars over the years.

Apple is not the only American to perform tax planning group but few companies have developed to such an extent and with such efficiency. The French Telecoms Federation (TFF) has recently produced a study on tax avoidance of the big players OTT (Over the Top) in Europe which suggests that Apple is a master in the art to pay a minimum tax.

Tim Cook, Apple’s CEO, as well as Apple’s chief financial officer, will be cooked by the members of a commission of inquiry by the U.S. Senate which include Carl Levin and John McCain, two specialists hunting fraudsters who will seek clarification on the operation of the Irish subsidiary of Apple, Apple Sales International , which would, according to a report, managed $ 74 billion pre-tax profits between 2009 and 2011 without the U.S. government or the federal states (California, for example) do not see color.

high tax rates encourage financial arrangements
The commission has articulated its attacks include the fact that Apple’s patents are registered in the United States but royalties and benefits from their use are made free from taxation.

when Apple tries to defend himself by saying that American society is paying the most taxes in value, or $ 6 billion, John McCain does not fail to replicate that “Apple may be one of the companies paying more taxes but it is also one of the most effective ways to avoid paying it . “

Tim Cook has prepared his defense by suggesting that it is the U.S. tax law too complex and restrictive that pushes this optimization to the extreme, with a corporate tax rate to 35%, which makes strongly to create financial structures in tax havens, as well as an array of taxes on profits abroad that discourages repatriation and led to the establishment of subsidiaries abroad. Hence the decision to borrow rather than repatriate more than $ 100 billion of Apple’s treasure stored abroad.

If the U.S. government actually think to some easing of the legal code with respect to businesses, large overhaul however, is not the order of the day. Apart from a few adjustments and recommendations, major U.S. companies should continue their arrangements.