Apple CEO Tim Cook testified on Capitol Hill today, aggressively answering to allegations of Apple’s tax evasion.
Appearing before the Senate Subcommittee on Investigations, the Steve Jobs successor reminded lawmakers that Apple is America’s larget corporate taxpayer, flatly denied any wrongdoing, and showed no desire to alter Apple’s practices:
We pay all the taxes we owe — every single dollar. We don’t depend on tax gimmicks.
Cook even went on the offensive, critiquing the nation’s “outdated” tax code.
Here are five fast facts about his testimony and the situation.
1. Apple is Accused of Tax Evasion by Congress
On Monday, Politico reported that Senate investigators were accusing Apple of evading billions of dollars in taxes. The Senate probe alleges that the tech giant took advantage of numerous tax loopholes in the U.S. and funnelled close to $44 billion into offshore accounts. The investigation continued with details that Apple’s foreign subsidiaries, especially in Ireland, have no tax-resident status, which means they can take advantage of low tax rates.
2. Cook Said Apple is the Victim & the Tax System is Broken
The bi-partisan panel questioning the CEO asked him about the abuses of the tax system the investigation found. Cook called the current tax system “outdated” and said the legendary firm is the one being abused. Cook’s testimony along with two other Apple execs continuously defended the company’s record and tax policy.
3. Cook Gave McCain and Other Senators a Basic Lesson in Gadgets
According to the Atlantic, the hearing turned in to an Apple 101 class. The two senators leading the panel, John McCain and Carl Levin, asked Cook a series of questions about Apple products, including why apps need updating. When the hearing took a break, the successor to Steve Jobs was barraged by other senators professing their love for the company’s creations. Apple’s innocence still remains to be seen, but maybe Tim Cook should consider tech advice for politicians as a side job.
4.This is Apple’s Second Recent Scandal
Last year, the computer giant struggled through another serious situation. Foxconn Technology Co LTD, a subsidiary that makes Apple products, was criticized for horrible working conditions after an explosion killed three workers. Foxconn’s working conditions were a huge pain for Cook and his colleagues.
Apple manufacturer, Foxconn, was found to have children as young as 14 working in their factory in China.Click here to read more
5. Apple Should be Fine
Apple is a leader in innovation and should be able to bounce back from this. Bloomberg Businessweek and other outlets felt the CEO handled himself well. Criticism was at a low, but the company still has opponents against its tax methods. Time will only tell if Apple under Tim Cook’s leadership will skyrocket past the legend its original creator left behind.