Technology giant Apple has come under fire from authorities in Italy, who claim that the company has hidden more than $1.3 billion from the Italian tax authority.
Apple spokeswoman Kristin Huguet said in a statement that whilst Apple was aware of the investigations being launched by the Italian tax review, the company was “confident” that authorities would find everything to be in compliance with the local law. Apple also denied allegations that profits made in Italy had been transferred to a subsidiary in Ireland, where corporation taxes are significantly lower.
“Apple pays every dollar and euro it owes in taxes, and we are continuously audited by governments around the world,” Said Ms Huguet, “We are confident the current review will reach the same conclusion.”
In recent months, Italy’s tax authority has been observed to be particularly aggressive in pursuing cases against both domestic and multinational companies. Badly bitten by the global financial crisis, it is speculated by some that this crackdown is due at least in part to the country’s dwindling revenues.
In an unrelated case, Apple was fined over $1 million after the company was found guilty of failing to provide its customers with proper warranty disclosures as Italian citizens are entitled to under the local laws.