U.S. Markets closed

Tim Cook Defends Apple's Tax-Avoiding Policies To The Senate

Jay Yarow
Tim Cook


Apple appeared in Washington D.C. to testify about its overseas profits, and its tax rate.

The main point of focus during the inquiry was an Irish Apple subsidiary called Apple Operations International (AOI).

AOI is the holding company that Apple's international sales flow through. Apple worked out a deal with the Irish government that AOI would only be taxed at ~2%.

There is nothing illegal about it. But, Senator Carl Levin of Michigan seemed to think it was shameful. He hammered Apple over AOI repeatedly.

In the end, this hearing seemed to do very little.

Apple discussed its tax operations, which are legal and designed to minimize its tax burdens.

Levin and Senator John McCain questioned whether or not this was best for the country.

The other Senators seemed to be largely sympathetic to Apple and said the tax code should be simplified.

One bit of news: Apple CEO Tim Cook said he thinks the rate for repatriating cash should be in the single digits.

And here's our live notes from the event.

More From Business Insider