Corporate Tax Investigation Into Apple Inc. (NASDAQ:AAPL) Wrapped Up By The Italian Prosecutors

The prosecutors in Italy have ended the tax probe into Apple Inc. (NASDAQ:AAPL), according to Reuters. The Italian prosecutors were investigating the allegations against Apple regarding its failure to pay corporate taxes worth $964 million (or 879 million euros). In accordance with the law in Italy, the prosecutors will now put the case on trial in the court.

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The Apple tax-evasion case

The investigation included the period from 2008 to2013. The case involved two managers from Apple’s Italian subsidiary and one from Apple Sales International, the Ireland based subsidiary of the company’s operations.

The allegations on the company are that it reduced the taxable income foundation by generating profits in Italy booked by Apple Sales International. The probe concerns that Apple saved a little less than 900 million euros from 2008 to2013.

Apple’s Clarification

In an e-mailed statement to Reuters, Apple Inc. (NASDAQ:AAPL) said that the company was among the highest tax payers in entire world. It clarified that the company had paid every single euro of corporate tax to all the states where it has its business operations.

It further also said that the tax authorities in Italy had also audited its operations there, from 2007 to 2009. According to Apple, the Italian auditors had also confirmed, back then, that Apple’s operations in Italy were in complete acquiescence with transparency requirements and OECD documentation.

The U.S. company also said that the new charges pressed against its employees were baseless and without merit. Apple said the process will reveal same facts as the Italian auditors did.

Apple, which drives major portion of its revenue from iPhone sales, is among leading companies such as Google Inc (NASDAQ:GOOGL) and Amazon.com, Inc. (NASDAQ:AMZN) that have fallen into the tax claws of European tax enquiries. Italy, which is reeling under economic meltdown effects, has the tax authorities who have vowed to probe into all domestic firms and MNCs, in order to find out moves which might enhance public finances.

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Terrel is US Markets Daily's business news reporter. She joined US Markets Daily after five years as a print reporter.

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