Apple Insists It Pays Full Share of Taxes in Italy

Apple Insists It Pays Full Share of Taxes in Italy

"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," a company spokeswoman said. "We are confident the current review will reach the same conclusion."  

NEW YORK -- Apple Inc. said today that it fully pays the taxes it owes everywhere and is confident that a tax evasion probe in Italy will find it in compliance.

"Apple pays every dollar and euro it owes in taxes and we are continuously audited by governments around the world," a company spokeswoman said. "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."

Apple (IW 500/4) is under investigation in Italy for allegedly failing to declare over 1.0 billion euros ($1.35 billion) in taxes owed, Italian media reported Wednesday.

Milan prosecutors have accused the iPhone and iPad maker of hiding 206 million euros in 2010 and 853 million euros in 2011, the magazine L'Espresso said on its website.

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.

The Italian news agency Ansa, citing judicial sources, said investigators have visited Apple's Milan offices and two people were being investigated.

The multibillion-dollar California-based technology giant and other multinational U.S. companies have been under fire in the U.S. Congress as lawmakers accuse them of using Irish subsidiaries to dodge taxes.

Senators Carl Levin and John McCain held a hearing in May that examined offshore profit shifting and tax avoidance by Apple through the use of three Irish subsidiaries that claimed they were not tax residents anywhere, saving tax on $44 billion of non-U.S. income.

Copyright Agence France-Presse, 2013

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