Apple Inc. (Nasdaq: AAPL), the world's most valuable company, issued a response to a story in the New York Times on April 29 that exposed its comprehensive strategy to minimize paying corporate taxes.
While the Cupertino, Calif., electronics giant noted it also pays an enormous amount of taxes, the company avoided commenting on the many strategies it uses to minimize payments, such as managing a subsidiary called Braeburn Capital in Nevada and setting up dual companies in Ireland. These strategies, among others, minimize Caifornia state as well as federal tax liabilities.
Apple has conducted all of its business with the highest of ethical standards, the iPad developer said, complying with applicable laws and accounting rules.
The Times story didn't say anything Apple does is wrong or illegal. Indeed, the company's auditors, Ernst & Young, attested to the company's reports for the fiscal year ended Sept. 24.
Instead, the Times story cited a former U.S. Treasury expert who suggested Apple could have paid an additional $2.4 billion on top of the $3.3 billion in taxes paid on last year's recordbreaking operating income of $33.8 billion, or $28.05 a share.
Apple said its growth created an incredible number of jobs in the U.S., without divulging numbers. It has 47,000 U.S. employees and claims to be among the top creators of American jobs in the past few years.
Apple's total payroll is 60,400.
The company also said in the first half of the current fiscal year, its continued earnings successes have generated almost $5 billion in federal and state income taxes.
The company also claimed to have contributed to many charitable causes but had never sought publicity.
Apple shares fell $1.85 to $582.13 in Tuesday trading. Their all-time record high was $644 on April 10. The company's market value is $553 billion.