Madoff Scandal

A four-month long investigation into Apple’s tax affairs by the Securities and Exchange Commission has cleared the company of any wrong-doing in regard to the way the company accounted for taxes in respect of its overseas operations.

A Senate Permanent Subcommittee on Investigations hearing into Apple’s tax affairs had previously accused the company of seeking “the Holy Grail of tax avoidance” over cash held overseas. The hearing proved anti-climatic, with no wrong-doing established, and the investigation handed off to the SEC. The SEC has now closed the case.

Tim Cook made an unequivocal statement during the Senate hearing that Apple used no tax gimmicks … 

We pay all the taxes we owe. Every single dollar. We not only comply with the laws, but we comply with the spirit of the laws. We don’t depend on tax gimmicks.

Cook took the opportunity to propose comprehensive reform of corporate tax laws to allow it to repatriate overseas revenue back to the USA without having to pay U.S. taxes on income the company said had already been taxed overseas.

Via AllThingsD

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7 Responses to “SEC finds Apple didn’t create “the Holy Grail of tax avoidance” after all”

  1. I thought the government was shut down?

  2. Why did the U.S. put Iraq prisoners in Guantanamo Bay instead of a U.S.soil prison again?

  3. Len Williams says:

    It’s about time this was announced! Now I’d like to see the SEC and Justice Dept. make as much noise about Apple being innocent as it did when they accused Apple of malfeasance.

    • Joseph Riley says:

      It actually wasn’t the SEC that accused Apple of malfeasance. It was the US Senate, and it’s chief Douchebags, Sens. Levin and McCain!

      From previous 9-5 Article: “Here’s what the other side has to say via Michigan’s Carl Levin (Democrat) on the senator’s view of Apple’s tax avoidance strategy:

      “Apple wasn’t satisfied with shifting its profits to a low-tax offshore tax haven. Apple sought the Holy Grail of tax avoidance. It has created offshore entities holding tens of billions of dollars, while claiming to be tax resident nowhere. We intend to highlight that gimmick and other Apple offshore tax avoidance tactics so that American working families who pay their share of taxes understand how offshore tax loopholes raise their tax burden, add to the federal deficit and ought to be closed.”

      Republican Senator John McCain adds:

      ”Apple claims to be the largest U.S. corporate taxpayer, but by sheer size and scale, it is also among America’s largest tax avoiders. A company that found remarkable success by harnessing American ingenuity and the opportunities afforded by the U.S. economy should not be shifting its profits overseas to avoid the payment of U.S. tax, purposefully depriving the American people of revenue. It is important to understand Apple’s byzantine tax structure so that we can effectively close the loopholes utilized by many U.S. multinational companies, particularly in this era of sequestration.I have long advocated for modernizing our broken and uncompetitive tax code, but that cannot and must not be an excuse for turning a blind eye to the highly questionable tax strategies that corporations like Apple use to avoid paying taxes in America. The proper place for the bulk of Apple’s creative energy ought to go into its innovative products and services, not in its tax department.”

      And what, pray tell, have these two douchebags done for the American public in the last 20 year? Nothing, that’s right!