Apple Didn’t Use the “Holy Grail of Tax Avoidance,” SEC Investigation Finds
The U.S. Securities and Exchange Commission has closed the Apple file, finding the company’s disclosures sufficient and clear of any wrong-doing over its cash and tax related practices, AllThingsD reports.
The news comes after four months of digging into Apple’s finances, which was triggered by a Senate Permanent Subcommittee on Investigation finding Apple liable of using the “Holy Grail of tax avoidance” to shrink corporate taxes on its $74 billion in profits recorded during the past four years.
It was just a couple days ago when the Wall Street Journal reported that Apple was requested to hand over additional disclosures about its overseas cash and tax policies.
Apple CEO Tim Cook was in the hot seat back in May before a Congressional committee to answer questions. Back then Apple disputed the subcommittee’s claims and said that Apple does pay all required taxes.
“We pay all the taxes we owe. Every single dollar,” Cook said during a May hearing. “We not only comply with the laws, but we comply with the spirit of the laws. We don’t depend on tax gimmicks.”
It turns out the SEC investigation has found that Apple does not use the “Holy Grail of tax avoidance.”