Tim Cook gets a Senate grilling: Apple tax-avoidance schemes deemed 'highly questionable' A new report released by the US Senate has revealed the full extent of Apple's tax-avoidance schemes. Investigators found that the tech-company routed all of its sales through a number of subsidiary bodies, grouped under the name Apple Operations International and incorporated in Ireland. The report was published by the Senate Permanent Committee on Investigations and described the company's practices as "highly questionable." One Senate source described Apple's network of subsidiaries as "iCompanies - I for Imaginary, Invisible." Apple Operations International's income of $30 billion provided 30 per cent of Apple's worldwide net profits in the years 2009-2011 and yet paid no taxes. This move is technically legal: Ireland decides who it can tax based on the location of people managing the company and the US decides based on where your company is incorporated. As AOI was incorporated in Ireland but managed from the US it avoided both country's "checks." Apple has defended itself in a prepared statement, claiming that "A.O.I. performs important business functions that facilitate and enhance Apple's success in international markets," and that it is "not a shell company." The tech-giant have also complained that the US's 35 per cent corporate tax rate is extortionate and that it forced the company to avoid taxation in order to maintain a competitive in the marketplace. The company's CEO, Tim Cook is due to appear before subcommittee today and explain the company's tax strategy.