Apple calls for change as it faces Senate

APPLE has called for comprehensive reform of the US corporate tax system as it faces up to claims of using offshore subsidiaries to dodge billions in payments.

Chief executive officer Tim Cook is due to face questioning today in Washington from a Senate panel investigating how companies use schemes to reduce their tax bills.

In a prepared testimony, he called for a major change to tax law.

“Apple supports comprehensive reform of the US corporate tax system,” he states. “The company supports a dramatic simplification of the corporate tax system that is revenue neutral, eliminates all tax expenditures, lowers tax rates and implements a reasonable tax on foreign earnings that allows free movement of capital back to the US.”

He added that the reform would likely boost economic growth, even though Apple would end up paying more US corporate tax.

In a memorandum released yesterday, the Senate’s Permanent Subcommittee on Investigations stated Apple has three subsidiaries that have no “tax residency” in Ireland, where they are incorporated, or in the United States, where they are managed.