《TESTIMONY OF APPLE INC.》.pdfVIP

TESTIMONY OF APPLE INC. BEFORE THE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS US SENATE MAY 21, 2013 I. INTRODUCTION Apple Inc. “Apple” or the “Company” appreciates the opportunity to testify before the Permanent Subcommittee on Investigations “Subcommittee” in connection with its inquiry into the tax practices of multinational companies. Apple, a California company, employs tens of thousands of Americans, creates revolutionary products that improve the lives of tens of millions of Americans, and pays billions of dollars annually to the US Treasury in corporate income and payroll taxes. Apple’s shareholders – from individuals and institutions to pension funds and public employee retirement systems – have benefitted from the Company’s success through the appreciation of its stock price and generous dividends. Apple safeguards the capital entrusted to it by its shareholders with prudent management that reflects the Company’s extensive international operations. Apple complies fully with both the laws and spirit of the laws. And Apple pays all its required taxes, both in this country and abroad. Apple welcomes an objective examination of the US corporate tax system, which has not kept pace with the advent of the digital age and the rapidly changing global economy. The Company supports comprehensive tax reform as a necessary step to promote growth and enable American multinational companies to remain competitive with their foreign counterparts in both domestic and international markets. The information Apple has provided to the Subcommittee demonstrates several key points about the Company ’s operations that are critical to any objective evaluation of its tax practices: ? Apple has been a powerful engine of job creation in the US. Apple estimates it has created or supported approximately 600,000 jobs in the US, including nearly 50,000 jobs for Apple employees and approximately 550,000 jobs at other companies in fields such as 1 engineering, man