When Tim Cook called accusations that Apple dodges taxes in some countries “total political crap” it's fair to say a few eyebrows were raised in some nations around the world.
Despite funneling its European profits through Ireland in order to benefit from lower tax rates, Cook was adamant “Apple pays every tax dollar we owe.”
Apparently that wasn’t the case in Italy, where the company has today agreed to pay a whopping $347 million (around £234m) in back taxes.
The payments will come following an investigation into suspected tax fraud. For the period between 2008 and 2013, Apple Italia was alleged to have failed to declare its earnings.
For its earnings, the firm should have paid 880 Euros in Corporation tax, but the negotiated sum lets Apple off the hook for about one third of that figure.
A Guardian report outlines that Ireland’s corporation tax is only 12.5 per cent, while the Italian tax agency charges 27.5 per cent. The differing national policies make it far more advantageous for companies like Apple and Facebook to declare their European earnings in Ireland.
Apple has not commented on the reports, but the Italian tax office has confirmed a report from the Italian newspaper La Repubblica over the payments Apple must make.
