Apple Chief Executive Tim Cook made no apology before a U.S. Senate panel on Tuesday for the iPad maker's use of a "highly questionable" tax minimization strategy.

By channeling profits into Irish-based subsidiaries, Apple was able to shelter billions of dollars of income from the U.S.'s 35 percent federal corporate tax rate.

The three companies are all incorporated in Ireland, but have no country of tax residence, and Apple has negotiated an income tax rate of 2% or less. One of the subsidiaries has not submitted a tax return anywhere in five years.

Apple Operations International, which sits atop the company's web of subsidiaries, has never had any employees.

Most of Apple's foreign operations are run through the offshore affiliate.

By taking advantage of the so-called "check-the-box" loophole, Apple was able to avoid paying $12.5 billion in taxes on its global distribution network.

Ireland's deputy prime minister insisted the country's tax regime is not to blame for Apple's exploitation of loopholes in international tax rules.


FOR MORE TOMONEWS US, GO TO: http://www.youtube.com/subscription_center?add_user=TomoNewsUS
Facebook http://www.facebook.com/TomoNewsUS
Twitter @tomonewsus http://www.twitter.com/TomoNewsUS
Google+ http://gplus.to/TomoNewsUS

FOR FUNNY TAIWANESE ANIMATIONS, GO TO: http://www.youtube.com/subscription_center?add_user=NMAWorldEdition

FOR FUNNY TAIWANESE ANIMATIONS IN ENGLISH, GO TO: http://www.youtube.com/subscription_center?add_user=NMAtv

FOR TOMONEWS IN JAPANESE, GO TO: http://www.youtube.com/subscription_center?add_user=TomoNewsJP

FOR APPLE DAILY ENGLISH, GO TO: http://www.youtube.com/subscription_center?add_user=AppleDailyEnglish