This is just maddening. Developed in California. Made in China. $30 billion profit tax free.
Some of these subsidiaries had no employees and were largely run by top officials from the company’s headquarters in Cupertino, Calif., according to congressional investigators. But by officially locating them in places like Ireland, Apple was able to, in effect, make them stateless – exempt from taxes, record-keeping laws and the need for the subsidiaries to even file tax returns anywhere in the world.
In 2011, for example, one subsidiary paid Ireland just one-20th of 1 percent in taxes on $22 billion on pretax earnings from various operations; another did not file a corporate tax return anywhere and has paid almost nothing on $30 billion in profits since 2009.
Overall, Apple’s tax avoidance efforts shifted at least $74 billion beyond IRS reach between 2009 and 2012, the investigators said. Apple could still have to pay U.S. taxes on it if the company were to return the money to the United States.
Apple’s strategy underscores how riddled with loopholes the American corporate tax code has become, critics say. It also shows how difficult it will be for Washington to overhaul the tax system and shut these loopholes down.
Apple declined to comment, except to make available a text of the testimony Cook is expected to provide. Cook is expected to emphasize that Apple is most likely “the largest corporate income tax payer in the U.S., having paid nearly $6 billion in taxes to the U.S. Treasury” in the last fiscal year.
He is also expected to push for overhauling the U.S. corporate tax code, especially lowering rates on companies moving foreign overseas earnings back to the United States. (well isn't that conveeeeenient)