Apple Inc. To Pay Italy $348 Million Over Tax Dispute

American multinational technology company Apple has been fined €318 million (USD 347 million) by Italian tax authorities for moving funds to Ireland in order to avoid paying tax. The prosecutors said Apple’s tax liabilities for the five successive years will hinge on an worldwide ruling on such cases.

As per news obtained via Italian news source La Repubblica, Apple’s Italian subsidiary is being investigating by the Italian legal authorities over failing to declare over a billion Euros to the tax authorities.

Italian daily newspaper La Repubblica, which broke the story, said that the tax authorities were pursuing Apple Italia for tax on €880m profits that it had transferred to Apple Sales International, which is based in Cork, Ireland. Previously the company told Reuters that it is one of the largest taxpayers in the world and paid every euro of tax it owed wherever it did business. Apple Italia did not respond immediately.

The global financial crisis spurred cash-strapped governments to crack down on tax avoidance and prompted complaints that companies cutting their tax bills to the bare minimum were getting an advantage in breach of European Union rules. Profit from other countries was diverted to Ireland, so that Apple could enjoy from the country’s beneficial tax structure.

Europe’s increased focus on Apple, though, forms part of a growing crackdown by European officials on the tax dealings of many USA global companies operating in the 28-member bloc.

However, after months of negotiations between the two sides, the tax authorities agreed to close the case in eturn for 318 million.

It’s the similar type of arrangement that Apple, along with other like companies such as Microsoft, Facebook and Google have been accused of doing in various other countries that also includes the United States.

This is an extremely controversial matter, as this has come to light just after Tim Cook commented on the issue of Apple’s tax evasion, calling it “political crap”, and he affirmed his statement saying “We pay ever tax dollar we owe”.

The US tech giant has not commented on the deal.

“I don’t think that’s a reasonable thing to do”, he said.