During an interview on CBS’s 60 Minutes, Tim Cook said the notion that Apple doesn’t pay its US taxes is “total political crap.”
Cook’s comments arrive at a time when a growing debate is brewing in the United States over corporations avoiding taxes through inversion deals, where a company redomiciles its tax base to another country.
Apple saves billions of dollars by funneling much of its taxes to subsidiaries in Ireland, where it declares much of its profit.
“Apple pays every tax dollar we owe,” Cook told 60 Minutes’ Charlie Rose.
Cook said bringing profits back to the United States would cost him 40% and “I don’t think that’s a reasonable thing to do,” he said.
In 2012 the Senate Permanent Subcommittee on Investigations probed Apple’s tax strategies and found that it avoided paying $9 billion in US taxes. The company was found to be using a strategy involving three offshore units with no discernible tax home, or “residence.”
Apple owns $181.1 billion in offshore profits, more than any other UScompany. The tech giant would owe an estimated $59.2 billion in taxes if it tried to bring the money back to the United States.
Cook says the current US tax code being used today was developed for the industrial age and not the digital age. “It’s backwards. It’s awful for America. It should have been fixed many years ago,” Cook adds.