WASHINGTON (AP) — A Senate panel says Apple Inc. is avoiding paying billions of dollars in U.S. taxes by using a cluster of affiliates located outside the United States and is prepared to question its chief executive Tuesday about the "loopholes."

Apple CEO Tim Cook is expected to explain the company's tax strategy to the Senate Permanent Subcommittee on Investigations, which released a detailed report Monday on the company's practices.

The world's most valuable company says it is complying with the laws and pays "an extraordinary amount" in U.S. taxes.

Sen. Carl Levin, D-Mich., the panel's chairman, says Apple's capitalizing on loopholes in the U.S. tax code is unique among multinational corporations.

"Apple is exploiting an absurdity," Levin said at the start of the hearing.

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