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News Summary: Apple said to avoid tax billions

The Associated Press

USING AFFILIATES: Apple Inc. employs a group of affiliate companies located outside the United States to avoid paying billions of dollars in U.S. income taxes, a Senate investigation has found.

BIG OVERSEAS HOLDINGS: Apple is holding overseas some $102 billion of its $145 billion in cash, and an Irish subsidiary that earned $22 billion in 2011 paid only $10 million in taxes, according to a report by the Senate Permanent Subcommittee on Investigations.

APPLE DENIES GIMMICKS: The company's tactics raise questions about loopholes in the U.S. tax code, lawmakers say. Apple insists that it doesn't use tax gimmicks and pays "an extraordinary amount" in U.S. taxes, about $6 billion in fiscal 2012.