Apple Investigated Over Claims of $1.3 Billion Tax Avoidance
Published on: 14th Nov 2013
By: Ian Mansfield
Apple is facing an investigation in Italy over allegations that it has hidden US$1.34 billion from the local tax authorities.
The investigation is looking into claims that the company evaded payments of EUR206 million in 2010 and a further payment of EUR853 million in 2011, the Reuters news agency reported, citing two sources familiar with the matter.
The move is the latest in a series of tax investigations by Italian authorities who are increasingly aggressive in clamping down on tax avoidance in a country where it has been seen almost as standard business practice.
Apple is accused of having booked some of its profit through an Ireland-based subsidiary in order to reduce its tax payments in Italy. Ireland has often been used as an off-shore location for routing transactions in order to minimise taxation in other countries.
In a statement, Apple said that "The Italian tax authorities already audited Apple Italy in 2007, 2008 and 2009 and confirmed that we were in full compliance with the OECD documentation and transparency requirements. We are confident the current review will reach the same conclusion."
On the web: Reuters
Previous Story << Mobile Infrastructure CAPEX Expected to Peak this Year in North America