Sunday, November 17, 2013

Tax Authorities in Italy Put Apple Under Investigation

ROME — Italian prosecutors have opened an investigation into whether Apple paid all its taxes in the country, an official in Milan said on Wednesday.

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The official, speaking on the condition of anonymity because the investigation was continuing, said that a “fiscal verification” of Apple was underway, but would not disclose details, like the time period in question. The investigation is still preliminary, and a judge will determine whether prosecutors have a case.

The inquiry was first reported by Italian news outlets on Wednesday. According to an article published by the weekly magazine L’Espresso, investigators are looking into whether Apple avoided Italian taxes by filing returns through a subsidiary in Ireland, where corporate taxes are lower.

In a statement, Apple said: “Apple pays every dollar and euro it owes in taxes and we are continuously audited by governments around the world. The Italian tax authorities already audited Apple Italy in 2007, 2008 and 2009 and confirmed that we were in full compliance with the O.E.C.D. documentation and transparency requirements. We are confident the current review will reach the same conclusion.”

In recent years, tax authorities in Italy have scrutinized multinational companies more closely. Last June, the fashion designer duo Domenico Dolce and Stefano Gabbana were found guilty of tax evasion in a case relating to the sale in 2004 of their brands to a Luxembourg company in order to pay lower taxes. They have appealed the conviction. Italian investigators are also examining Google’s finances.

Nick Wingfield contributed reporting from Seattle.

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