Apple to pay Italy 318 million euros, sign tax deal: source

Thu Dec 31, 2015 7:11pm EST
 
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By Emilio Parodi and Agnieszka Flak

(Reuters) - Apple Inc will pay Italy's tax office 318 million euros ($348 million) to settle a dispute over allegations it failed to pay taxes for six years, a source with direct knowledge of the matter said on Wednesday.

The maker of iPhones and iPads will also sign an accord next year on how to manage its tax liabilities from 2015 onward, the source said.

The deal comes as the European Union and national governments take a tougher stand against profit-shielding arrangements used by multinational companies.

Italian prosecutors have been investigating allegations that Apple failed to pay corporate taxes to the tune of 879 million euros in 2008-2013 by reducing its taxable income when it booked profits generated in Italy through its Irish subsidiary, sources told Reuters earlier this year.

"Apple will pay the tax agency 318 million euros and will sign a new tax accord for fiscal years 2015 onwards early next year," the source said.

The tax office earlier confirmed a report in La Repubblica newspaper that it had reached a deal with Apple, but declined to say how much the U.S. company had agreed to pay.

The source said that while the judicial probe, which also involves three Apple managers, remained open for now, the settlement with the tax agency would likely have a positive impact on the investigation.

Apple could not immediately be reached for comment. Previously the company told Reuters that it is one of the largest taxpayers in the world and paid every euro of tax it owed wherever it did business.   Continued...

 
A figure of Apple founder Steve Jobs is seen in a craft shop in Naples, Italy, in this October 7, 2011 file photo.   REUTERS/Ciro De Luca/Files