Apple LogoAn Italian judge has accepted a nearly $50,000 settlement agreement with the head of Apple's Irish-based unit as part of a probe into allegations that the company failed to pay taxes in Italy (via Reuters).

A six-month jail sentence for the Apple executive has been converted into the payment of a 45,000 euro ($49,126) fine as part of the settlement agreement, according to Reuters' source.

The original investigations were completed in March 2015 and accused Apple of booking profits generated in Italy through an Irish subsidiary in an effort to lower its taxable income base and save nearly €900 million from 2008 through 2013.

At the time, Apple had called the allegations against its employees "completely without merit". But in December 2015, it was reported Apple had agreed to pay 318 million euros to Italy – only a third of the amount it was said to have failed to pay in corporate taxes over the five year period. However, under Italian law, a settlement agreement does not imply an admission of guilt.

Milan prosecutors investigating the allegations have also asked for the case against two managers from the Italian subsidiary of Apple to be dropped, the source said.

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.

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.

In August, the European Commission ruled that Apple received illegal state aid from Ireland, following a three-year inquiry into the company's tax arrangements in the country. The investigation's results showed that Apple allegedly paid between 0.005% and 1% in taxes in Ireland between 2003 and 2014, compared to the the country's headline 12.5% corporate tax rate.

Apple CEO Tim Cook called the findings "total political crap" and described the lower end 0.005% tax rate as a "false number." In an open letter, Cook said Apple is confident the decision "will be reversed," but the appeal process could take several years in European courts. Apple has previously said it fully complies with international tax law and is the largest taxpayer in the world.

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

Carlanga Avatar
59 months ago
That Italian judge will be enjoying under the table money for a while from this.
[doublepost=1477573532][/doublepost]
This is a PRSI thread, right? Governments issue arbitrary fines on a weak basis all the time. FEDGOV essentially forced BofA to take over Countrywide bank and a couple years later fined BofA about $14B for actions of Countrywide during the 2008 financial crisis that the FEDGOV itself (The Fed) caused by changing loan qualification requirements for political purposes. When can we fine them?
Congratulations, you were first today to make a European news into a US government complain.
Score: 3 Votes (Like | Disagree)
thermodynamic Avatar
59 months ago
That’s total political crap right Tim, now let’s see how many other dogy deals have been made. We’ll start with Ireland please.
I'm sure Bono has some tips he'd share, he's also into using human rights to wind up peoples' sympathies with. (Or if he's not a hypocrite, he's never really said enough detail about where the system is wrong.....)
Score: 3 Votes (Like | Disagree)
MH01 Avatar
59 months ago
Apple execs could actually be sent to prison and people would be in denial. Maybe it is a river that runs through the amazon ;)

This sadly will drag on just like the Samsung v apple legal battles .
Score: 2 Votes (Like | Disagree)
Rocketman Avatar
59 months ago
This is a PRSI thread, right? Governments issue arbitrary fines on a weak basis all the time. FEDGOV essentially forced BofA to take over Countrywide bank and a couple years later fined BofA about $14B for actions of Countrywide during the 2008 financial crisis that the FEDGOV itself (The Fed) caused by changing loan qualification requirements for political purposes. When can we fine them?
Score: 1 Votes (Like | Disagree)
RightMACatU Avatar
59 months ago
Was he Sicilian? :p
Score: 1 Votes (Like | Disagree)
H2SO4 Avatar
59 months ago
That’s total political crap right Tim, now let’s see how many other dogy deals have been made. We’ll start with Ireland please.
Score: 1 Votes (Like | Disagree)

Top Stories

General Music and AirPod 3 Feature

Rumor: Apple to Announce Third-Generation AirPods and HiFi Apple Music Tier on May 18

Thursday May 13, 2021 10:32 pm PDT by
A new rumor suggests that Apple will announce the third-generation AirPods and the recently rumored HiFi, or high-fidelity Apple Music tier, on Tuesday, May 18, via a press release on its website. The new rumor comes from Apple YouTuber Luke Miani who shared the alleged exclusive news with the AppleTrack website. According to the YouTuber, Apple plans to release the next-generation AirPods...
apple park drone june 2018 2

Apple Fires Newly Hired Ex-Facebook Product Manager Following Revelations of Past Misogynistic Comments

Thursday May 13, 2021 12:10 am PDT by
Apple has fired Antonio García Martínez, an ex-Facebook product manager and author of the controversial book "Chaos Monkeys," following public and internal calls for removal and investigation due to past misogynistic statements, The Verge reports. Apple hired Martínez earlier this week to join its ads team, however, comments that Martínez made in the past sparked condemnation from users...
imac m1 blue isolated 16x9 500k

M1 iMac is Up to 56% Faster Than Prior-Generation High-End 21.5-Inch iMac

Wednesday May 12, 2021 10:03 am PDT by
Apple's M1 iMacs are set to start delivering to customers next week, and ahead of the official launch day, benchmarks for the machines have been showing up on Geekbench, likely from reviewers who are testing them. It will come as no surprise that M1 iMac benchmarks are right on par with benchmarks for the M1 MacBook Pro, MacBook Air, and Mac mini, coming in with an average single-core score...
2021 mbp hdmi slot 3d

2021 MacBook Pro Leaks Confirm Returning MagSafe and Ports

Friday May 14, 2021 3:06 am PDT by
Apple's upcoming MacBook Pro models are expected to feature a number of major changes such as larger display options and powerful new Apple silicon chips. Among the more surprising updates to this year's MacBook Pro models is the return of three ports that have been missing from the machines for over five years. Expected to come in 14- and 16-inch sizes, the 2021 MacBook Pro models are...
fortnite apple logo 2

Judge in Epic vs. Apple Case Floats Potential Compromise

Wednesday May 12, 2021 3:54 pm PDT by
In the ongoing legal battle between Apple and Epic Games, the two companies are this week calling up their expert witnesses to argue their points before Judge Yvonne Gonzalez Rogers, who will make a decision in the case after a three week trial. Expert testimony is not as exciting as some of the leaked App Store documents that were highlighted last week, especially as much of what's being...
google photos

PSA: Google Photos Unlimited Storage Ends Next Month, Here's How to Export Your Pictures to iCloud

Thursday May 13, 2021 5:26 am PDT by
For as long as it's existed, Google Photos has offered free unlimited storage for uploading images at a reduced yet good enough quality for most users. From June 1, 2021, however, all photos and videos uploaded to Google accounts will count against users' cloud storage. If you've been relying on Google to back up your media library, it may be time to move that content elsewhere. This article...
AirTag in Envelope Feature 2

AirTag Used to Successfully Track a Mailed Package Across the UK

Wednesday May 12, 2021 8:44 am PDT by
An Apple customer in the United Kingdom has successfully used Apple's Find My network to track an AirTag as it was being sent by mail to a friend in a completely different city. Outlined in a blog post at Intego, Kirk McElhearn said he taped an AirTag to a piece of card, wrapped it inside a small bubble envelope, and then sent it on its way. Kirk lives in the small town of...
m1 ipad pro chip

M1 iPad Pro Over 50% Faster Than Previous Generation in Early Benchmarks

Tuesday May 11, 2021 11:56 am PDT by
Last month, Apple introduced a new iPad Pro with the same M1 chip found in the latest Macs, and early benchmark results indicate that the M1 iPad Pro is over 50% faster than the previous-generation iPad Pro. Based on five legitimate Geekbench 5 results (here's the fifth) for the fifth-generation 12.9-inch iPad Pro with the M1 chip, the device has average single-core and multi-core scores of...
prosser macbook air colors stacked

Images Reveal Colorful New MacBook Air Design

Tuesday May 11, 2021 5:06 am PDT by
Apple's next MacBook Air will feature a completely new design and come in a range of colors like the 24-inch iMac, according to leaker Jon Prosser, who has now released supposedly accurate renders of the new machines based on leaked images. In a new video uploaded to YouTube channel Front Page Tech, Prosser elaborated on his previous prediction that Apple's next-generation MacBook Air models ...
iPhone 13 Camera Backs

iPhone 13 Models Will Be Slightly Thicker and Will Have Larger Camera Bumps

Monday May 10, 2021 10:41 am PDT by
Apple's upcoming iPhone 13 models will be slightly thicker than the iPhone 12 models and will also feature larger, thicker camera bumps with lenses that protrude less, according to iPhone 13 schematics seen by MacRumors. The new iPhone 13 and 13 Pro models are expected to feature a thickness of 7.57mm, up from 7.4mm in the iPhone 12 models. That's an increase of 0.17mm, which won't be hugely ...