The empassioned response from Cook followed Rose contending that many members of Congress believe Apple is perpetuating a scheme to pay little or no taxes on $74 billion in overseas revenue.
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Cook: “That is total political crap”. “We happily pay it”.
United States multinational companies and the government are faced off on the issue, and corporations are unwilling to bring overseas money back because of the tax implications and want Washington to act. In a May 2013 Senate hearing, Cook said that he would like to bring Apple’s revenue back to the U.S., but the high corporation tax means it would not be worth it.
A year ago the “LuxLeaks” revealed that some of the world’s biggest companies – also including Pepsi and Ikea – had lowered their tax rates to as little as one percent in secret pacts with tax authorities in Luxembourg. He says it doesn’t suit firms in the “digital age” and that’s the reason he’s forced to keep billions in offshore accounts.
Rose’s interview with Cook covers a diverse range of topics, including some of the more interesting talking points about Apple’s business, such as encryption technology and its decision to manufacture its popular gadgets in China. Cook added that he would “love to” repatriate it but he will not do that as it would cost him 40% (in taxes) to bring it home.
Thanks to its outsized profits – the company booked $11.1 billion last quarter – and the fact that two-thirds of its business is overseas, Apple has topped the list of USA multinationals in the crosshairs of some lawmakers. “It’s past time to get it done”.
The full 60 Minutes interview is due to air in the United States on CBS this Sunday.
Apple Chief Executive Officer Tim Cook speaks during a event for students to learn to write computer code at the Apple store in the Manhattan borough of New York December 9, 2015. Cook replied that private communication is private and a back door for the government for national security is not the solution, unless served with a warrant. “I don’t think that’s a reasonable thing to do”, the businessman said.
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Clearly, his opinions have not changed as excerpts from the show state, “There have been people that suggest that we should have a back door”, said Tim Cook.
