Phone brand expects a “fair rate” to repatriate its money from abroad

The CEO of the company, Tim Cook, believes that there will be a reform next year, after the White House elections

Apple does not intend to repatriate the billions of dollars it keeps outside the United States until the country does not carry out a tax reform that allows applying to the money generated internationally by the company “a fair rate” , as assured by the CEO of the multinational, Tim Cook , who trusts that this reform will take place next year, after the elections to the White House.Image result for tax legislation

“Current tax legislation says we can keep it (the money) in Ireland or bring it back and when we do we will pay 35% federal tax plus a weighted average in the States where we operate around 5%, so it’s 40%, “Cook said in an interview with The Washington Post , where he says Apple” is not going to repatriate until there is a fair rate. “

In this sense, before the accusations received by the company to commit some fraud, Cook defends that it is not a debate, since “it is legal to do so” in accordance with “the current tax law” and not a matter of patriotism. “It’s not about how much more you pay, you’re more patriotic.”

Thus, the CEO of Apple recognizes that the company would be willing to pay more because it currently “does not pay anything” for the money it keeps out of the country, but notes that “like many other companies” is waiting for the moment to repatriate it.

On the other hand, Cook emphasizes that this money outside the United States exists because the multinational generates two thirds of its business internationally. “We are not looking for a tax haven,” adds the CEO of Apple.

Thus, with the US presidential election at the end of 2016 in the background, Cook expresses his confidence that the Government will agree that a tax reform is in the best interest of the country and the economy, so he trusts that this will happen next year and Apple will not have to keep indefinitely the money outside the United States.

“I think that, regardless of the party that occupies the White House, the United States needs a reform of the corporation tax (…) I think that everyone thinks that the current system is not working. I am optimistic that by 2017 there will be some kind of corporate tax reform, “he adds.

Litigation in Europe

On the other hand, in reference to the legal dispute that the company maintains in the European Union, Tim Cook has stressed the importance of having a fair hearing, noting that the multinational will appeal otherwise.

In this regard, the manager of Apple argues that the European Union accuses the company of receiving special treatment from Ireland, something that denies to ensure that these tax benefits are available to all and is not something that has been done only with Apple. “It was his law,” he adds.

Also, Cook believes that the substance of the dispute in Europe is not whether Apple should pay more taxes, but where should pay, so, in his opinion, there is “a tug-of-war between countries.”

“Tax laws say that where value is generated is where you have to pay taxes and since we develop our products in the United States, the tax accrual belongs to the United States,” Cook said.

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