Are taxes paid?

I haven't heard the whole testimony (and won't) that Apple CEO Tim Cook gave before Congress today, but I've definitely heard some interesting excerpts.

Apple isn't pushing tax shelters as far as they could, no doubt. The fact that Apple accounts for 2.5% of all corporate taxes collected in the US is a pretty good indicator of that.  And a pretty good indicator that a lot more

But the idea that they aren't doing anything to shelter money from US taxes is pretty absurd on its face, as well.

One thing I wonder about: Apple's R&D spending supposedly went up 40% last year. I wonder if that was actually an increase in activity, or, as I suspect, was reclassifying some activity that was already going on to be R&D for tax purposes. I don't know, but it would shock me if a significant amount of that wasn't just reclassification.

Oh, and further proof that Apple is playing games to avoid taxes: their recent bond offering to repurchase shares. This was done purely to keep from repatriating overseas profits (and thereby having to pay taxes on that money).

So yes, Tim, I believe that Apple is using far less than all of the available tricks to avoid paying taxes, but claiming that it isn't using any just doesn't hold up to even casual scrutiny.

And that overseas money? Trapped is not the word for it. You can pay the taxes on it (remember, it's only a tax holiday, which is to say deferment, that's keeping you from paying taxes today. Those taxes should need to be paid eventually (though it is likely that you'll be able to convince Congress to overlook it)) and bring it back today. The only thing preventing that is an unwillingness to pay the piper.