Political is reporting that Tim Cook is set to testify at a Senate hearing next week that is investigating the offshore tax practices of American corporations:
Apple CEO Tim Cook is expected to testify at the Senate Permanent Subcommittee on Investigation's hearing Tuesday, POLITICO has learned.
Apple has been under fire for its tax practices. The company recently avoided paying as much as $9.2 billion in taxes by buying back stock with debt instead of offshore cash, Bloomberg reported. Apple has a reported $100 billion in offshore funds.
The hearing is part of the panel's continued examination of how companies shift profits offshore and how that impacts the tax code. Representatives from Microsoft and Hewlett-Packard testified in September 2012 in a hearing on the same topic.
Tax avoidance by big corporations has (finally) become a hot topic in the US. Here in the UK, pressure has been mounting for months on companies like Google, Amazon and Starbucks over their tax-avoidance schemes (Amazon only paid £3 million in UK taxes off of £4 billion in UK sales). Other EU countries are following suit in clamping down on offshore tax practices. In addition to Tim Cook, Politico states that representatives from the IRS and Treasury are also set to testify.