Italy alleges Apple hid $1.3bn from taxman

Prosecutors have accused the US tech giant of failing to declare the money over the course of 2010 and 2011.

Last updated: 13 Nov 2013 18:48
Email Article
Print Article
Share article
Send Feedback
Apple is the latest prominent corporation to become the target of a tax inquiry in Italy [AP]

Apple is under investigation in Italy for allegedly hiding more than $1.34bn from local tax authorities, Italian media has reported.

Milan prosecutors have accused the US technology giant of hiding more than $200m in 2010 and nearly $900m in 2011, the magazine L'Espresso said on its website on Wednesday.

Apple's Italian subsidiary is accused of booking some of its profits through Apple Sales International (ASI), an Irish-based subsidiary, thereby reducing its taxable income in Italy, the weekly reported.

There is a global process under way...the focus is shifting towards multi-nationals that are able to lower their tax base through their international operations

Italian tax source

Judicial sources cited by Ansa news agency said investigators had visited the company's Milan offices and two people were being investigated.

The Reuters news agency cited a judicial source as saying the investigation was under way.

The iPhone and iPad maker is the latest prominent corporation to become the target of a tax inquiry in Italy amid a global crackdown aimed at preventing companies such as Google, Amazon and others from avoiding taxes.

In crisis-hit Italy, tax authorities faced with dwindling revenues have become more aggressive with domestic and multinational companies.

In June, fashion designers Domenico Dolce and Stefano Gabbana were handed a 20-month suspended prison sentence and a heavy fine for hiding hundreds of millions of euros from the tax authorities. Both denied any wrongdoing.

"There is a global process under way and the Italian tax authority is one of the most active," said an Italian tax source.

A US Senate investigation in May revealed that Apple structured its operations so that the vast majority of its non-US profits are reported in Ireland, by companies which, through an unusual feature of Irish tax law, are not tax resident in that country.


Email Article
Print Article
Share article
Send Feedback
Topics in this article
Featured on Al Jazeera
Swathes of the British electorate continue to show discontent with all things European, including immigration.
Astronomers have captured images of primordial galaxies that helped light up the cosmos after the Big Bang.
Critics assail British photographer's portrayal of indigenous people, but he says he's highlighting their plight.
As Western stars re-release 1980s charity hit, many Africans say it's a demeaning relic that can do more harm than good.
No one convicted after 58 people gunned down in cold blood in 2009 in the country's worst political mass killing.
While hosting the World Internet Conference, China tries Tiananmen activist for leaking 'state secrets' to US website.
Once staunchly anti-immigrant, some observers say the conservative US state could lead the way in documenting migrants.
NGOs say women without formal documentation are being imprisoned after giving birth in Malaysia.
Public stripping and assault of woman and rival protests thereafter highlight Kenya's gender-relations divide.