Apple has reached a settlement with Italian tax authorities that could see the company pay Italy's government as much as $350 million, according to a report.
The deal comes after the European country launched an investigation into whether the Cupertino, California-based tech giant funneled more than $1 billion in Italian revenue through an Irish subsidiary to lower its tax burden, The New York Times reported on Wednesday.
Apple's complicated international tax structure has faced increased scrutiny in recent years. In 2013, a US Senate committee alleged that the company had created "a highly developed tax avoidance system," with a report claiming that despite earning $22 billion in 2011, Apple's Irish subsidiary paid just $10 million in taxes. Earlier this month, Apple CEO Tim Cook said such congressional attacks were "political crap," and he blamed a "backwards" tax code "made for the industrial age, not the digital age."
Apple isn't the only large tech company with operations in Ireland, which has one of the lowest corporate tax rates in the world. Google and Microsoft also have a significant presence in the country and have drawn the ire of tax authorities who claim the companies are shifting profits offshore to lower their US and European tax burdens.
Apple did not respond to a request for comment.
Apple - USE TAG
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