Site   Web

December 30, 2015

Apple to Shell Out $348M in Back Taxes to Italy

Photo Credit: 401(K) 2012 via flickr

Apple, in a deal with Italian authorities, has agreed to fork over $348 million (318 million euros) in taxes.

The move comes after an investigation found the company had not paid nearly triple that amount — 879 million euros — in corporate taxes in the country over a five-year period.

Apple and Italy will also work out a strategy on how the Cupertino firm can cover future taxes for business it does in the country.

“Apple will pay the tax agency 318 million euros and will sign an accord for fiscal years 2015 onwards early next year,” a source told Reuters.

The tax office had confirmed the deal with Apple to La Repubblica, but declined to say how much the U.S. company would be paying.

Apple has yet to comment on the matter.

The firm could also be forced to pay as much as 10 years worth of back taxes to Ireland.

The European Commision opened an investigation last summer into Ireland’s actions for allegedly offering state aid to Apple. The Commission, in a letter, told the Irish government that it was offering the U.S. iPhone maker illegal state aid through tax arrangements that have “no scientific basis.” Rather, the provision helps the iPhone maker to avoid paying international tax on tens of billions of dollars in revenue, which breaks EU laws.

According to EU competition law, if a government is found to have doled out state aid to a company without justification, it must then recover that money from the company.

The iPhone maker is not the only U.S. tech company to be the subject of such investigations in Europe, however.

Google and Amazon are also in the EU’s crosshairs.