Apple is under probe in Italy for allegedly evading €1 billion ($1.35 billion) in tax.
The information is courtesy of two people who are familiar with the matter.
"Apple, the world's most valuable technology company, is under investigation in Italy for allegedly evading more than 1 billion euros ($1.35 billion) in taxes, two people familiar with the case said," Mashable reported.
Reportedly, authorities have also "seized equipment" during the course of investigation from Apple's headquarters in Italy.
Apparently, Apple may have used foreign companies to evade paying taxes in Italy per one of sources, who chooses to remain anonymous, as the probe is ongoing. Reportedly, the income was booked to Apple's Irish holding company.
Apple clarified its stance in an emailed statement to Mashable and said it pays all taxes. The company also asserted that Apple Italy has been audited for 2007, 2008 and 2009 and were in "full compliance."
"Apple pays every dollar and euro it owes in taxes and we are continuously audited by governments around the world," said Apple. "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. We are confident the current review will reach the same conclusion."
According to Italian publication L'Espresso, the case revolves around Apple's tax payments in Italy for 2010 and 2011. Apparently, Apple Italy has underreported taxable income of €206 million and €853 million in 2010 and 2011, respectively.
"If the investigative hypotheses are confirmed, Apple would have underestimated Italy of approximately EUR 206 million taxable income in 2010 of more than 853 million as of the 2011 tax year, based on a false representation of the accounting records and using fraudulent means thesis to hinder the investigation," L'Espresso reported (translated).
Per L'Espresso, this is the second Italian investigation into Apple's tax strategy in the region. Apparently, the first investigation was closed due to lack of evidence.
