Tim Cook says charges of Apple tax avoidance are 'total political crap'

Tim Cook: Notion of Apple Avoiding US Taxes 'Political Crap'

Apple CEO Tim Cook is not happy about people calling him a "tax avoider," and thinks the current US tax code on foreign income is broken.

During an interview with "60 Minutes," Cook got uncharacteristically rattled by questions accusing Apple of hoarding billions of dollars overseas in order to allegedly dodge higher corporate tax rates in the U.S.

"We pay more taxes in this country than anyone," Cook said, while acknowledging that that should be the case since Apple is the most profitable company in the US.

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Cook said he'd love to bring back some of the cash to the U.S., but it wouldn't make sense under the current tax code. "It would cost me 40% [taxes] to bring it home. And I don't think that's a reasonable thing to do," he said.

Cook continued, "This is a tax code, Charlie, that was made for the industrial age, not the digital age. It's backwards. It's awful for America. It should have been fixed many years ago. It's past time to get it done."

When Rose followed up with the Senate's assertion that Apple's running a scheme "to pay little or no corporate taxes on $74 billion in revenues held overseas," Cook simply said it's "total political crap."

"There is no truth behind it. Apple pays every tax dollar we owe," he said.

The 11 greatest momentsApple's ever had on stage:

10 PHOTOS
The 11 greatest moments Apple's ever had on stage
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Tim Cook says charges of Apple tax avoidance are 'total political crap'

1. When Jobs returned to Apple in 1997, the crowd erupted with applause and cheer as he walked back on stage for the first time.

(Photo via YouTube)

2. The introduction of the first iMac was a milestone for Apple. It was the first computer that seemed cool and not focused on the enterprise. The crowd ate it up.

(Photo via YouTube)

3. The crowd went nuts when Jobs demonstrated how WiFi works back in 1999.

(Photo via YouTube)

4. Jobs showed the world the iPod for the first time at an intimate event in 2001.

(Photo via YouTube)

5. Conference attendees went ballistic when apple unveiled the iPhone in 2007.

(Photo via YouTube)

6. He even prank called Starbucks on stage and ordered 4000 lattes to show how well phone calls worked on the iPhone.

(Photo via YouTube)

7. Apple debuted the iPad in 2010 at half the price most people expected.

(Photo via YouTube)

8. One of Jobs' most memorable "one more thing" announcements was the first Facetime demo in 2010.

(Photo via YouTube)

9. Jobs perfectly summed up the company's approach to mobile with a simple image of a street sign.

(Photo via YouTube)

10. Apple CEO Tim Cook used Jobs' famous "one more thing" line for the first time when he unveiled the Apple Watch.

(Photo via YouTube)

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Apple keeps most of the money it generates overseas parked offshore. The company says it's because most of the money is reinvested in foreign entities, but critics have argued it's a sophisticated maneuver to avoid the ~35% US corporate tax, which is significantly higher than the 12.5% rate in Ireland, where Apple keeps most of its cash.

"Substantially all of the Company's undistributed international earnings intended to be indefinitely reinvested in operations outside the U.S. were generated by subsidiaries organized in Ireland, which has a statutory tax rate of 12.5%," Apple wrote in its annual report.

Apple had $186.9 billion of the company's cash, cash equivalents and marketable securities outside of the US, according to the annual report.

The full interview is scheduled to air on December 20.

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