Apple Italia accused of one billions euros in tax evasion

Apple’s Italian subsidiary and several of its senior executives had been under investigation for fraud over the alleged failure to fulfil with responsibilities to declare its earnings in Italy between 2008 and 2013.

Apple Italia did not respond immediately to a request for comment on the case, which could set a precedent for other European countries' dealings with the company.

The company's Italian subsidiary allegedly failed to declare more than one billion euros ($1.5 billion) to the tax authorities, according to Italian daily La Repubblica.

According to the newspaper, Apple Italia should have paid corporation tax of 880 million euros ($1.3 billion) for the period.

But after months of negotiations, the tax authorities agreed to close the case in return for a cheque for 318 million euros. 

This case comes against a backdrop of mounting controversy over the tax arrangements of multinational groups who use cross-border corporate structures to reduce their tax bills.

Apple chief Tim Cook described accusations that the world's richest company was sidestepping US taxes by stashing cash overseas as "political crap" and insisted: "We pay every tax dollar we owe."

In October, Apple said sales were on a record $US234 billion, boosted by record iPhone sales.