FORTUNE: By Monday afternoon, the day before Tim Cook's scheduled appearance before the Senate Permanent Subcommittee on Investigation, both sides of the story were available online as PDFs: Apple's (AAPL) 17 pages of airbrushed testimony and the subcommitee staff's blistering 40-page retort.
As reader Jim Neal puts it: "Anybody who thinks this is going to be a cordial exchange of ideas has another think coming."
From the subcommittee's Executive Summary:
"The hearing will examine how Apple Inc., a U.S. multinational corporation, has used a variety of offshore structures, arrangements, and transactions to shift billions of dollars in profits away from the United States and into Ireland, where Apple has negotiated a special corporate tax rate of less than two percent. One of Apple's more unusual tactics has been to establish and direct substantial funds to offshore entities in Ireland, while claiming they are not tax residents of any jurisdiction. For example, Apple Inc. established an offshore subsidiary, Apple Operations International, which from 2009 to 2012 reported net income of $30 billion, but declined to declare any tax residence, filed no corporate income tax return, and paid no corporate income taxes to any national government for five years. A second Irish affiliate, Apple Sales International, received $74 billion in sales income over four years, but due in part to its alleged status as a non-tax resident, paid taxes on only a tiny fraction of that income.
"In addition, the hearing will examine how Apple Inc. transferred the economic rights to its intellectual property through a cost sharing agreement with its own offshore affiliates, and was thereby able to shift tens of billions of dollars offshore to a low tax jurisdiction and avoid U.S. tax. Apple Inc. then utilized U.S. tax loopholes, including the so-called "check-the-box" rules, to avoid U.S. taxes on $44 billion in taxable offshore income over the past four years, or about $10 billion in tax avoidance per year. The hearing will also examine some of the weaknesses and loopholes in certain U.S. tax code provisions, including transfer pricing, Subpart F, and related regulations, that enable multinational corporations to avoid U.S. taxes."
In a statement to the Senate, Apple explains -- sort of -- what it's doing in Cork.
FORTUNE -- There are three parts to the 17-page testimony Apple (AAPL) submitted Monday afternoon in advance of Tim Cook's appearance before the Senate Permanent Subcommitee on Investigations, scheduled for Tuesday:
The easy part: A recitation of how much Apple pays in Federal taxes ($6 billion in fiscal 2012), the number of jobs it has created MOREPhilip Elmer-DeWitt - May 20, 2013 5:08 PM ET
The reaction to Yahoo's acquisition of Tumblr is way out of proportion to its importance. It could be a relatively small mistake or a marginal gain.
FORTUNE -- It is only recently that Tumblr started asking itself, "So, how should we make money from this thing?" As of today, that's a question that Yahoo and its still-new CEO, Marissa Mayer, will have to address. And yet it's not necessarily the most MOREDan Mitchell, contributor - May 20, 2013 2:34 PM ET
A suicide story that broke on Saturday had fallen apart by Monday.
FORTUNE -- The Agence France Press headline that moved over the business wires Saturday morning seemed like deja vu all over again:
Three new factory suicides at Apple supplier Foxconn
Citing only a statement issued by China Labor Watch in New York, the news agency reported that the deaths occurred at a Foxconn factory in the central city of Zhengzhou and MOREPhilip Elmer-DeWitt - May 20, 2013 12:37 PM ET
It's time for the Web 1.0 icon to put down its credit card and get back to work.
By Cyrus Sanati
FORTUNE -- Yahoo's $1.1 billion acquisition of Tumblr looks like an expensive and misguided attempt by chief executive Marissa Mayer to somehow make the Web 1.0 company "cool" again. Instead of innovating her way out of the mediocre corner of the Internet in which Yahoo currently resides, the former Google MOREMay 20, 2013 12:15 PM ET
It's just gone mobile.
FORTUNE – There was a time when web browsers duked it out for dominance on the desktop. But with users consuming information more and more on smartphones, tablets, and newer form factors like "phablets," the battleground has shifted to mobile. Who's winning?
As recently as June 2012, the competition was in a dead heat: Android led with nearly 22%, followed by Opera at 22%, then Safari on iOS MOREJP Mangalindan, Writer - May 20, 2013 11:23 AM ET
High-tech meets low-tech (bike messengers!) as new Chinese consumers embrace online shopping.
By Scott Cendrowski, writer
FORTUNE -- Just as cash-strapped consumers in the developing world bypassed so-called landline phones in favor of mobile devices, so China's lower-income consumers are skipping physical stores in favor of e-commerce sites.
A recent report by McKinsey & Co. shows that e-commerce sales in China reached an estimated $190 billion last year, almost equaling the U.S. MOREMay 20, 2013 11:12 AM ET
The hottest trend in enterprise technology is fueling the market.
FORTUNE --- If you hadn't heard of Tableau Software before its glamorous debut on the public market last Friday, you're not alone. The Seattle-based company makes visual analytics tools for technical and non-technical employees alike but is far from a household name. And yet, it raised around $254 million in its initial public offering and closed its first day of trading at MOREMichal Lev-Ram, writer - May 20, 2013 10:42 AM ET
Sees the Inverse Head and Shoulders pattern he's been waiting for.
FORTUNE -- Gotta love these technical analysts.
As William Meade pointed out in Saturday's ETF Daily News post, he never once mentioned Apple's (AAPL) fundamentals during the three months that he was advising his readers -- mostly hedge fund managers -- to sell sell sell.
Now the president of Pure Alpha Research (and former research director at Zacks in Chicago) has changed his MOREPhilip Elmer-DeWitt - May 20, 2013 10:14 AM ET
Eight months of what CNBC calls the Great Rotation has led to some odd imbalances.
FORTUNE -- Tuesday marks the eight month anniversary of Apple's (AAPL) all-time intraday high of $705.07 a share, set on Sept. 21, 2012.
Meanwhile, last Friday, Google (GOOG) hit its own all-time intraday high of $919.98 -- just a dinner for two at McDonalds from $925, Google's mean 12-month price target according to Thomson/First Call.
This coincidence may MOREPhilip Elmer-DeWitt - May 20, 2013 7:54 AM ET
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