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Apple denies US tax charges

Apple's chief executive Tim Cook has told a US Senate committee it pays all the tax it is required to. The firm was accused of being "among America's largest tax avoiders" by the committee. Apple said it will pay more than $7bn in US tax this year.

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US Senate questions Apple's 'tax loopholes'

Apple has been accused of employing a group of affiliate companies located in Ireland to avoid paying billions of dollars in US income taxes, a Senate investigation has alleged.

The Apple store in Regent Street in London. Credit: Philip Toscano/PA Wire

According to the report, Apple is holding around $102 billion of its $145 billion in cash overseas, and an Irish subsidiary that earned $22 billion in 2011 paid only $10 million in taxes.

But the committee said there was no indication Apple had done anything illegal. Many other multinational corporations use similar tax techniques to avoid paying US income taxes on profits they make overseas.

But the report found that Apple uses a unique twist, and lawmakers are raising questions about loopholes in the US tax code.

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