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  • Apple to Face a Trial in Italy After Prosecutors Finish a Probe Over Unpaid Taxes

    Apple is currently in the middle of potentially facing trial in Italy after prosecutors recently finished a probe into claims that the company’s accounting led to more than 879 million euros ($964 million) in unpaid corporate taxes. At the core of the issue are accounting techniques employed by apple from 2008 to 2013 where the company booked income to a subsidiary in Ireland rather than Italy. More specifically, two managers from Apple’s Italian operations and one employee from Apple’s Irish subsidiary, Apple Sales International, were under scrutiny.

    If Apple had booked income with Italian tax authorities, its taxes would have been much higher. Overall, the Cupertino California company reportedly saved roughly $964 million using its Irish holding company during the allotted timeframe. For its part, Apple claimed that it is one of the largest taxpayers in the world and has paid all required dues in full. The statement is seemingly taken verbatim from a response to media regarding other tax-related allegations though, which makes it seem less impactful in this scenario. Apple said the following regarding the Italian probe’s claims.

    These new allegations against our employees are completely without merit and we're confident this process will reach the same conclusion.
    For those of you who didn’t know, previously in 2013, government authorities seized equipment from Apple’s regional headquarters in Milan as part of the investigation. CEO Tim Cook ended up testifying in front of a US Senate subcommittee stating the following:

    [Apple pays] of the taxes we owe — every single dollar. We not only comply with the laws, but we comply with the spirit of the laws.
    This issue is just one of the many that Apple has faced from governing bodies. The number of legal issues Apple has been involved in has grown exponentially since the success of its iPhone. We’ll have to wait and see how situation plays out going forward.

    Source: Reuters
    This article was originally published in forum thread: Apple to Face a Trial in Italy After Prosecutors Finish a Probe Over Unpaid Taxes started by Akshay Masand View original post
    Comments 2 Comments
    1. unison999's Avatar
      unison999 -
      Why is Apple raising prices due to the exchange rate difference between American dollar and foreign funds? Seeks benefits of U.S. dollar but will not pay U.S. taxes and hide the funds in Ireland? If your money is in Ireland, your product is manufactured in China why should Apple get the benefit of U.S. funds exchange rate?
    1. XweAponX's Avatar
      XweAponX -
      I suppose the Irish holding company holds for all of Europe, if so then Italy can go piss up a rope.