The Wenatchee World

Weather:

Weather

The latest extended forecast from The Weather Channel

Remove this weather forecast

Overnight

Lo69° Mostly Clear

Tuesday

Hi90° Sunny

Tuesday Night

Lo66° Mostly Clear

Wednesday

Hi87° Sunny

Wednesday Night

Lo64° Mostly Clear

Thursday

Hi85° Sunny

Thursday Night

Lo65° Mostly Clear

Friday

Hi90° Sunny

Friday Night

Lo68° Partly Cloudy

Saturday

Hi92° Mostly Sunny

Apple’s overseas strategy ducks U.S. taxes, investigators find

Send to Kindle
Print This

WASHINGTON — Apple Inc. employs a group of affiliate companies located outside the United States to avoid paying billions of dollars in U.S. income taxes, a Senate investigation has found.

The world’s most valuable company is holding overseas some $102 billion of its $145 billion in cash, and an Irish subsidiary that earned $22 billion in 2011 paid only $10 million in taxes, according to the report issued Monday by the Senate Permanent Subcommittee on Investigations.

The strategies Apple uses are legal, and many other multinational corporations use similar tax techniques to avoid paying U.S. income taxes on profits they reap overseas. But Apple uses a unique twist, the report found. The company’s tactics raise questions about loopholes in the U.S. tax code, lawmakers say.

The spotlight on Apple’s tax strategy comes at a time of fevered debate in Washington over whether and how to raise revenues to help reduce the federal deficit. Many Democrats complain that the government is missing out on collecting billions because companies are stashing profits abroad.