Apple LogoApple has agreed to pay 318 million euros in Italy to settle an investigation that determined the iPhone and iPad maker failed to pay nearly triple that amount in corporate taxes in the country over a five year period, according to Italian newspaper La Repubblica.

Italian regulators in Milan concluded a tax probe of Apple in March, accusing the company of booking profits generated in Italy through an Irish subsidiary in an effort to lower its taxable income base and save 879 million euros between 2008 and 2013.

Apple has yet to comment on the deal, but previously said it has paid all necessary taxes in countries that it operates. "These new allegations against our employees are completely without merit and we’re confident this process will reach the same conclusion," the company said in March.

Apple Italia is part of the company's European operation headquartered in Ireland, where Apple pays a significantly lower corporate tax rate compared to other EU countries. Ireland has a corporate tax rate of 12.5% for normal business activities, compared to a standard rate of 27.5% in Italy, per The Guardian.

Apple faces a similar Irish tax probe by the European Commission, which formally accused the company of receiving illegal state aid from Ireland in September 2014. A decision in the lengthy investigation has likely been delayed until early 2016, as the Brussels-based executive cabinet has requested supplementary questionnaires.

Apple's tax policies in Europe have come under intense scrutiny over the past three years, as the company is said to utilize multiple subsidiary companies located in the Irish city of Cork to move money around without significant tax penalties. Apple continues to deny any wrongdoing, and CEO Tim Cook recently described the accusations as "total political crap" on 60 Minutes.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Top Rated Comments

Alenore Avatar
85 months ago
This sounds like Italy's case was weak and Apple settled to make it go away. It's 1/3 of what Italy was seeking. Remember Italy is in a weak budgetary position (not much better than Greece) and is in shakedown mode. It happens here at the state level. Suddenly what had been accepted practices for years become "abusive." Usually the two sides reach a settlement and practices change prospectively. I've seen this happen with much smaller companies. I wouldn't be surprised if the larger EU probe ends the same way.
If that was that weak, Apple wouldn't have paid anything.
Score: 24 Votes (Like | Disagree)
MacUser2525 Avatar
85 months ago
This sounds like Italy's case was weak and Apple settled to make it go away. It's 1/3 of what Italy was seeking.
It is called a plea bargain where when guilty you take the best you can get so you do not take the chance of getting the worst possible result. If it was that weak they would have fought it for the win.
Score: 15 Votes (Like | Disagree)
RebornProphet Avatar
85 months ago
Apple paid what it was owed. However, the Italian government decided to move the goal posts to get more money from Apple, the same way that other companies try their best to swindle money from Apple.

Can you imagine how many people they have working to do Apple's taxes. Big companies will always use the unfixed loop holes. If they are there, use them.
Don't be such a fanboy. "Swindle" money from Apple? Pay your damn taxes and stop using loopholes. Apple doesn't know you, doesn't care about you, you're a number to them, a stat.

Defending them means nothing to them. People need to quit defending tech companies like they're a family member. What's even more hilarious is that you pay them for a device for the "privilege" to do so.
Score: 11 Votes (Like | Disagree)
SSD-GUY Avatar
85 months ago
Yeah Tim. You really pay "every dollar" you owe.
Score: 11 Votes (Like | Disagree)
venusboy Avatar
85 months ago
This is the scourge of the tech industry.

How many iPhones does Apple sell in Luxembourg, Ireland or the Cayman Islands ?
Score: 9 Votes (Like | Disagree)
KPOM Avatar
85 months ago
This sounds like Italy's case was weak and Apple settled to make it go away. It's 1/3 of what Italy was seeking. Remember Italy is in a weak budgetary position (not much better than Greece) and is in shakedown mode. It happens here at the state level. Suddenly what had been accepted practices for years become "abusive." Usually the two sides reach a settlement and practices change prospectively. I've seen this happen with much smaller companies. I wouldn't be surprised if the larger EU probe ends the same way.
Score: 6 Votes (Like | Disagree)

Popular Stories

2022 back to school apple

Apple Launches 2022 Back to School Offer: Up to $150 Gift Card With Mac or iPad

Friday June 24, 2022 5:08 am PDT by
Apple today launched its annual "Back to School" promotion for college/university students in the United States and Canada. This year's promotion offers a free Apple gift card with the purchase of an eligible Mac or iPad, rather than free AirPods like last year. Apple is also offering students 20% off AppleCare+ plans during the promotion. Apple is offering a $150 gift card with the purchase ...
apple ar headset concept 2

Apple CEO Tim Cook Hints at AR/VR Headset: 'Stay Tuned and You'll See What We Have to Offer'

Wednesday June 22, 2022 6:34 pm PDT by
CEO Tim Cook this week did an interview with China Daily, where he once again commented on on the future of augmented reality and hinted at Apple's work on an AR/VR headset. Render via designer Ian Zelbo Cook said that Apple is excited about the opportunities available with augmented reality, which is not too far off from prior comments that he's made, but he went on to say that people should ...
airpods pro 2 1

AirPods Pro 2 Said to Feature Upgraded H1 Chip, Find My, Heart Rate Detection, USB-C and More

Friday June 24, 2022 9:48 am PDT by
The next-generation AirPods Pro could come with a long list of new features that include heart rate detection, the ability to function as a hearing aid, and a USB-C port according to a report from 52Audio. The site claims that it has received new information on the AirPods Pro 2, and it has used that information to provide some renders on what the earbuds might look like. Design wise, there...
customize wallpaper setting ios 16

iOS 16 Beta 2 Tidbits: New Wallpaper Colors, Backup Over LTE, SMS Filtering and More

Wednesday June 22, 2022 2:16 pm PDT by
Apple today seeded the second betas of iOS 16 and iPadOS 16 to developers for testing purposes, and the new betas introduce new features and refine some of the changes that Apple made with the first iOS 16 release. Subscribe to the MacRumors YouTube channel for more videos. Lock Screen Photo Wallpaper Customization When customizing a photo on the Lock Screen, there are two new DuoTone and...
home app ios 16

Apple Confirms iPad Will No Longer Be Supported as a Home Hub in iOS 16

Wednesday June 22, 2022 12:38 pm PDT by
The iPad will no longer be able to be used as a home hub following the launch of iOS 16, iPadOS 16, macOS Ventura, and the HomePod 16 software this fall, Apple confirmed today. As discovered in iOS 16 code by MacRumors contributor Steve Moser, Apple says that the iPad will no longer be supported as a home hub. This information will be displayed in the Home app after updating to iOS 16.A home ...
apple ar headset concept 1

Apple Rumored to Announce 'Game-Changer' AR/VR Headset in January 2023

Friday June 24, 2022 2:52 am PDT by
Apple is "likely" to announce its long-rumored mixed-reality headset as soon as January 2023, Apple analyst Ming-Chi Kuo has reiterated. Concept render based on purported leaked information by Ian Zelbo In a detailed post on Medium, Kuo explained that Apple's headset will be a "game-changer" for the augmented-reality and virtual-reality market. Describing some of the headset's...