Apple Inc. Chief Executive Tim Cook appeared before a Senate Committee on Tuesday following the company’s tax-avoidance controversy.
This week, news emerged that a congressional report cited that Apple has avoided paying tens of billions of dollars in taxes by creating subsidiaries in other countries that are not required to pay taxes in the U.S.
We previously reported that investigators have not accused Apple of breaking any laws in the United States, but have stated that the companies large-scale tax avoidance efforts have resulted in at least $74 billion of tax-exempt dollars between 2009 and 2012, making it one of the largest tax avoiders in history.
Cook appeared before the Senate Committee and made no apology for saving billions of dollars in U.S. taxes through Irish subsidiaries and told lawmakers that his company backs corporate tax reform, even though it may end up paying more.
The Irish government said that they had made no special tax deal with Apple and if the company’s tax rate was too low, it wasn’t their fault in any way.
During the CEO’s grilling session, Republican John McCain chose to ask the most unexpected and probably the most important question, “Why the hell do I have to keep updating apps on my iPhone?”
Apparently, everyone present at the hearing had enjoyed McCain’s comic relief. You can watch the exchange in the video above.
Senator John McCain also praised Apple as a success story, but he said the company's tax strategy reflected a "flawed" tax system.