Italian Prosecutors Claim Apple Owes $960M in Taxes: Reuters

Italian prosecutors are alleging that Apple failed to pay roughly $964 million in corporate taxes between 2008 and 2013, reports Reuters, citing two sources. If they are right, the iPhone maker can expect to receive a “friendly invitation” from an Italian judge to defend its tax strategy in court.

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There has not yet been an official announcement revealing details, but Reuters’ sources say the investigations involve two managers from the Italian subsidiary of Apple, and one from its Ireland-based subsidiary, Apple Sales International.

The investigation was begun in 2013 with an accusation that Apple had shielded about €1 billion (roughly $1.3 billion) in profits from Italian tax authorities, who seized equipment from the company’s Italian headquarters. Authorities audited Apple’s Italian operations between 2007 and 2009, and found the company in full compliance with the OECD documentation and transparency requirements.

Apple, of course, repeated its earlier statement, saying that it has paid its taxes, and expressed confidence that the investigation would confirm this.

In a comment emailed to Reuters, Apple said it was one of the largest tax payers in the world and paid every euro of tax it owed wherever it did business.
[…] “These new allegations against our employees are completely without merit and we’re confident this process will reach the same conclusion,” it said.

This was the second Italian inquest into Apple’s tax strategy in the country. The first was closed due to a lack of evidence.