CEO Tim Cook reiterates Apple’s stand on consumer privacy
Apple Chief Executive Officer Tim Cook, on CBS’s 60 Minutes to be aired on December 20, slammed the governments for considering weaking encryption to add a back door as a solution to prevent attacks, reported Bloomberg Business. He also shared his discontent towards the taxation policies of the country.tech Updated: Dec 19, 2015 12:58 IST
Apple Chief Executive Officer Tim Cook, on CBS’s 60 Minutes to be aired on December 20, slammed the governments for considering weaking encryption to add a back door as a solution to prevent attacks, reported Bloomberg. He also shared his discontent towards the taxation policies of the country.
Cook added that, “There have been people that suggest that we should have a back door. But, the reality is if you put a back door in, that back door’s for everybody, for good guys and bad guys. I don’t believe that the trade-off here is privacy versus national security. I think that’s an overly simplistic view. We’re America. We should have both.”
After Edward Snowden blew the whistle on government run programmes to spy on its own citizens, companies that provide messaging apps have made their encryption standards more robust. The idea is for the encryption to be so good, that no one except the recipient can read the message. Not even the app maker.
Cook also dismissed the notion that the tech giant was avoiding taxes as “total political crap”. Cook’s remarks, made on CBS’ 60 Minutes show, come amid a debate in the United States over corporations avoiding taxes through techniques such as so-called inversion deals, where a company redomiciles its tax base to another country. Apple saves billions of dollars in taxes through subsidiaries in Ireland, where it declares much of its overseas profit.
“Apple pays every tax dollar we owe,” Cook told 60 Minutes’ Charlie Rose, according to excerpts from the interview released on Friday. Cook said bringing profits back to the United States would cost him 40%. “I don’t think that’s a reasonable thing to do,” he said.
The Senate Permanent Subcommittee on Investigations probed Apple’s tax strategies and found that Apple in 2012 alone avoided paying $9 billion in U.S. taxes, using a strategy involving three offshore units with no discernible tax home, or “residence.”
The press office of the subcommittee did not immediately return a request for comment on Cook’s remarks.
Apple holds $181.1 billion in offshore profits, more than any other US company, and would owe an estimated $59.2 billion in taxes if it tried to bring the money back to the United States, a recent study based on SEC filings showed.
The current tax code was made for the industrial age, and not the “digital age,” Cook said. “It’s backwards. It’s awful for America. It should have been fixed many years ago.”
Rebecca Lester, assistant professor of accounting at the Stanford Graduate School of Business, thought Cook’s colorful language might reflect frustration about the lack of movement on tax reform in Washington. “Companies and the government are in a game of chicken, waiting to see which one moves first,” she said. But so far, corporations are unwilling to bring overseas money back because of the tax implications and want Washington to act. “It sounds like Tim Cook is getting even more frustrated,” Lester said.