Rueters is reporting today that a judicial source with direct knowlege of the matter has revealed that Apple is under investigation in Milan for allegedly hiding more than 1 billion euros ($1.34 billion) from the Italian taxman, confirming a local media report. Report Updated on Nov. 15.
"The Apple investigation is under way," the judicial source said on Wednesday, without giving details.
A U.S. Senate committee investigation revealed in May that Apple had cut billions from its tax bill by declaring companies registered in the Irish city of Cork as not tax resident in any country. Senator Carl Levin said the company had achieved the "holy grail of tax avoidance" with the structures.
Last month Ireland stated that "it planned to shut down a much-criticized tax arrangement used by Apple Inc. to shelter over $40 billion from taxation - but will leave open an even bigger loophole that means the computer giant is unlikely to pay any more tax."
Update November 15: Apple has replied that it fully pays the taxes it owes everywhere, and was confident that a tax evasion probe in Italy would find it in compliance.
An Apple spokeswoman said in an email to AFP that "Apple pays every dollar and euro it owes in taxes and we are continuously audited by governments around the world. 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."
Source: MILAN (Reuters)