SENATE HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS-PERMANENT INVESTIGATIONS SUBCOMMITTEE Profit Shifting to Avoid U.S. Taxes A hearing that focuses on how some large corporations avoid U.S. federal income taxes by shifting profits into offshore subsidiaries. The Subcommittee will look at the structures and methods employed by multinational corporations to shift profits offshore and how such activities are affected by the Internal Revenue Code and related regulations. Witnesses will include representatives from the Department of the Treasury, the Internal Revenue Service, representatives of a multinational corporation, and tax experts. Apple CEO Tim Cook is coming to testify about stashing more than $100 billion overseas, rather than sending a lower-level executive. He will offer Congress Apple s ideas for comprehensive tax reform - an unusual move for the company into the world of policy. Apple has legally kept money overseas, allegedly to avoid paying steep U.S. taxes. The iPhone maker held $102.3 billion in cash offshore as of March 30, according to a Securities and Exchange Commission filing. That s a 24 percent increase from Sept. 30. Apple is one of the largest, U.S. taxpayers, if not the largest, cutting a check for nearly $6 billion to the IRS for fiscal year 2012. The company is estimating its U.S. income tax payment for 2013 will be about $7 billion. The tech company has kept its brain trust of employees based in its Cupertino, Calif., headquarters instead of farming out software development and other services to countries like India and China. Witnesses: Panel One: Stephen E. Shay, Harvard University Law School, Cambridge, Mass. J. Richard Harvey, Villanova University School of Law, Villanova, Pa. Panel Two: Timothy D. Cook, CEO, Apple, Inc. Peter Oppenheimer, senior vice president and chief financial officer, Apple, Inc. Phillip A, Bullock, head of tax operations, Apple, Inc. Panel Three: Samuel M. Maruca, director, Transfer Pricing Operations,
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