Politico reports today that it has learned Apple CEO Tim Cook is expected to testify at a Senate hearing next week related to an investigation into the offshore tax practices of the company:
Apple spokesperson Steve Dowling provided Politico with the following statement:
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.
Apple’s offshore tax strategy has been the subject of controversy several times in the past and in November of last year Australia hit Apple with a $28.5 million bill in back taxes over its questionable use of tax havens.
Earlier this month Moody’s Investment Services estimated Apple saved around $9.2B in its massive stock buy-back and dividend plan by borrowing instead of dipping into the over $100 billion in cash it keeps offshore. Apple would have ended up paying a 35 percent tax to repatriate the money.
