Italian prosecutors have wrapped up an investigation into allegations US tech giant Applefailed to pay corporate taxes to the tune of $964 million.
The investigation apparently now has enough evidence to ask a judge to drag Apple kicking and screaming into a court room.
The investigations, covering the period 2008-2013, involve two managers from the Italian subsidiary of Apple operations and one from its Irish-based subsidiary Apple Sales International, the sources said.
The probe claims that by having profits generated in Italy booked by the Irish subsidiary, Apple reduced its taxable income base and saved just under 900 million euros in the period, the sources said.
Apple said it was one of the largest tax payers in the world and paid every euro of tax it owed wherever it did business. Although that is a stretch of the truth. It might be obeying tax law by funnelling funds through Ireland or Luxemburg but it is certainly not paying every cent it should be paying.
It said the Italian tax authorities had audited Apple’s Italian operations in 2007, 2008 and 2009 and confirmed it was in full compliance with the OECD documentation and transparency requirements.
“These new allegations against our employees are completely without merit and we’re confident this process will reach the same conclusion,” it said.
Tax authorities have pledged to crack down on domestic and multinational companies in moves that could help shore up stretched public finances and sort out the country’s financial problems.