It has been confirmed Apple Inc. will pay Italy 318 million (euros) after many months of negotiations with the tax authorities. The allegations stem from Apple failing to pay taxes for six years.
Apple’s Italian subsidiary is under a growing controversy over the tax arrangements with the multinational cross-border corporate structure that aids in reducing their tax bill. Apple Italia is affiliated with the European operation, the European headquarters is located in Ireland, which has the lowest corporate taxes of 12.5% in European Union. It is reported that a large gap in the company’s Italian revenues started back in 2008 through 2013, which caused part of the investigation.
Since Apple’s activities in the Republic of Ireland are currently under investigation for being accused of dodging international taxes rules by allowing Apple shelter profits worth billions of dollars from revenue collectors in return for keeping jobs. Hopefully with Apple signing a new tax accord for the fiscal year 2015, this will aid in alleviating tax issues with their European operation.
Apple is still optimistic about their European operation, the company plans to expand its workforce to at least 6,000, but their may be problems looming in Apple’s own backyard. Congress has accused Apple for not declaring overseas earnings to the United States tax authorities. As we enter 2016, hopefully Apple’s tax issues will have an optimistic outcome.
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