Apple is under investigation in Italy for allegedly concealing one billion euros from tax authorities, according to two judicial sources with knowledge of the matter.
Milan prosecutors have accused the California-based firm of hiding 206 million euros in 2010 and 853 million euros in 2011 from tax authorities, said one of the sources, confirming Italian magazine L’Espresso’s report.
“Checks on the size of the tax are under way,” added the source.
The source further revealed that Apple’s Italian subsidiary booked some of its profits via Irish-based unit Apple Sales International (ASI). The move effectively reduced the firm’s taxable income in Italy.
In a statement, the iPhone and iPad maker said: “Apple pays every dollar and euro it owes in taxes and we are continuously audited by governments around the world.”
“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.”
Apple is the latest corporation to be targeted by a tax inquiry in Italy, following a global crackdown on preventing large firms such as Amazon, Google and others from evading taxes, said Reuters.
With revenues decreasing, tax authorities in Italy have become aggressive with multinational as well as domestic companies.
A tax source in Italy noted that a global process is underway, and the Italian tax authority is among the most active in the world.
Generally, the focus is on multi-national companies that are able to reduce their tax base via their international operations, added the source.