Though Apple was already tangling with the DOJ over alleged pricing fixing in the iBooks store, Tim Cook is set to testify in front of the Senate next week regarding tax reform. At issue is Apple’s vast overseas cash stores, something many senators feel is a tax avoidance scheme.
Tim Cook was quoted in a Politico article, ““I can tell you unequivocally Apple does not funnel its domestic profits overseas. We don’t do that. We pay taxes on all the products we sell in the U.S., and we pay every dollar that we owe. And so I’d like to be really clear on that.”
This is a bit of a change for Apple, a company that hasn’t traditionally played a big role in Washington. In the last year the company has spent nearly a million dollars launching its lobbying efforts, and it appears that Cook is prepared to make a charm offensive. He is quick to point out that Apple is not only one of the largest US taxpayers, but it was also investing $100 million in US manufacturing.
It appears that Apple is suffering from being the big kid on the block. The senators feel that the tech industry as a whole uses offshore holdings to avoid taxes. Cook is joining in the chorus of voices in tech that are asking for clearer tax rules, and help bring their tax burdens in line with overseas competitors.
