The EU had previously ordered Luxembourg and The Netherlands respectively to recoup millions in unclaimed tax payments from Fiat and Starbucks, and analysts believe an unfavourable decision on Apple's part could lead to a bill worth billions in Ireland in 2016. Yet the bad news on the tax front for Apple began today with the announcement that Apple has agreed to pay $US348 million (€318 million or £235 million) to settle a tax investigation in Italy. Even though the settlement is all about tax evasion, the news of the settlement never calls it such for the record.
According to the UK's Telegraph, "A spokesman for Italy's tax office said the tech company's Italian subsidiary had agreed to pay the sum to end the investigation, with Apple agreeing to pay what the authorities had demanded. However, it is less than the €880 million that Apple had reportedly been accused of hiding by the authority.
According to Italian newspaper La Repubblica, Apple had been accused of tax evasion over five years, from 2008 to 2013, by booking sales in Italy through its Irish subsidiary. Apple had previously claimed that it pays "every dollar and euro it owes in taxes" but did not comment on the Italian payment.
The settlement comes after lengthy negotiations between Italian authorities and the company.