Italy targets Apple in probe over £1b in undeclared income
"The Apple investigation is under way," a judicial source told Reuters, without giving details.
According to Italian magazine L'Espresso, Milan prosecutors say Apple failed to declare to Italian tax authorities €206 million in 2010 and €853 million in 2011.
In a statement, Apple said: "Apple pays every dollar and euro it owes in taxes and we are continuously audited by governments around the world. The Italian tax authorities already audited Apple Italy in 2007, 2008 and 2009 and confirmed that we were in full compliance with the OECD documentation and transparency requirements." The maker of the iPhone is the latest prominent corporation to become the target of a tax probe in Italy amid a global crackdown on tax cheating by multinationals.
In Italy, where tax authorities have become more aggressive in their dealings with global companies, fashion designers Domenico Dolce and Stefano Gabbana in June were handed a 20-month suspended prison sentence and a heavy fine for hiding hundreds of millions of euros in unpaid taxes. Both deny any wrongdoing.
Meanwhile, in October an Italian court ruled in favour of Oscar-winning film star Sophia Loren, putting an end to a 39-year legal dispute with tax authorities.
Earlier this month the Italian government proposed legislation to raise government revenues by making it more expensive for multinational online companies, such as Google, Amazon and Yahoo! to do business in the country.
A bill tabled by the centre-left Democratic Party aims to raise at least €1 billion through a law, dubbed the "Google tax", obliging companies that advertise and sell online in Italy to do so only through agencies with a tax presence in the country.
Frequently Asked Questions about this Article…
Apple is under investigation in Milan for allegedly hiding more than €1 billion from the Italian tax authorities. The investigation focuses on undeclared income from 2010 and 2011.
Apple is accused of not declaring €206 million in 2010 and €853 million in 2011 to the Italian tax authorities.
Apple stated that it pays every dollar and euro it owes in taxes and is continuously audited by governments worldwide. They also mentioned that previous audits by Italian tax authorities confirmed their compliance with OECD documentation and transparency requirements.
Italian tax authorities have become more aggressive in their dealings with global companies, targeting prominent corporations like Apple amid a global crackdown on tax evasion by multinationals.
Fashion designers Domenico Dolce and Stefano Gabbana received a suspended prison sentence and a fine for tax evasion, and an Italian court ruled in favor of Sophia Loren, ending a 39-year tax dispute.
The 'Google tax' is a proposed law by the Italian government aimed at raising at least €1 billion by requiring multinational online companies to conduct business in Italy through agencies with a tax presence in the country.
The 'Google tax' would make it more expensive for multinational online companies like Google, Amazon, and Yahoo to do business in Italy by obligating them to operate through local agencies with a tax presence.
The tax probe against Apple is part of a broader effort by Italian authorities to crack down on tax evasion by multinational corporations, highlighting the increasing scrutiny on global companies' tax practices.
Call 1300 880 160
Start a chat
Schedule a call
