Apple is no stranger to tax evasion investigations, so apparently Italy thought it would join in on the investigating by doing one of its own. According to a report coming out of Reuters, Apple is currently set to be under investigation in Italy for a supposed amount of $1.34 billion in unpaid taxes. Apple is, of course, confident in its ways and cites previous audits from Italy that show that Apple has been in compliance with its tax laws:
“Apple pays every dollar and euro it owes in taxes and we are continuously audited by governments around the world,” the company said in a statement. “The Italian tax authorities already audited Apple Italy in 2007, 2008 and 2009 and confirmed that we were in full compliance with the OECD documentation and transparency requirements. We are confident the current review will reach the same conclusion.”
Apple isn’t alone in this, however, as other companies and businesses have or are being investigated in Italy. The report cites other instances of Italy investigating business and individuals accused of tax avoidance, even giving designers Domenico Dolce and Stefano Gabbana a 20 month prison sentence as well as a “heavy fine” for hiding “hundreds of millions of euros” in an attempt to avoid paying taxes in Italy. Apple has been well known to move its money off shores, and specifically to places such as Ireland where taxes are very minimal. Time will tell what becomes of this investigation, if anything.
What do you think? Does the tax system need to be reworked? What is the best way to go about it? Let us know in the comments, or tweet me @TiP_Kyle.