Apple to pay out following tax fraud investigation
Italian investigators say company failed to pay €318m
Apple's Italian subsidiary has agreed to pay €318m (£235m; $348m) following an investigation into tax fraud allegations, the BBC reports.
Protests outside Apple offices in 2013
Italy's tax authorities say the company failed to pay €880m in tax between 2008 and 2013. During that period the company had over €1bn of revenues in Italy and €30m was paid in tax in the country.
The settlement follows an investigation by prosecutors in Milan and Apple has agreed to pay the amount requested by Italy's tax office.
The US tech giant has not commented on the deal.
It has previously denied attempting to escape paying tax owed on profits made around the world.
Apple Italia is part of the company's European operation which is headquartered in Ireland, a country with one of the lowest levels of corporation tax in the EU.
Earlier in the year we reported on a new report which critisied Apple for their lack of investment in the real economy.
The report from SOMO, 'Rich Corporations, Poor Societies: The Financialisation of Apple' explained how the multinational shrewdly minimised its corporate costs through the relentless offshoring of production and related 'activities' to low-wage countries and tax havens.
They say that Apple has more capital than it can productively use, for instance it has $200million sitting in offshore accounts.
As a result it is increasingly operating like a large institutional investor, investing most of its mounting cash pile in financial markets.
The report goes onto say that the case of Apple is just one example of how multinational corporations have collectively come to embrace Wall Street’s maxim of shareholder value, leading to a global ‘race to the bottom’.
Read more about Apple on our company profile page.
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