Apple to pay €318 million to shake off investigation into unpaid tax in Italy

Apple has agreed to pay €318m (£235m) to settle a dispute with Italian authorities after allegations that it dodged tax payments. The tech giant has backed down after it allegedly failed to pay €880m in tax between 2008 and 2013, according to the Italian tax office. Apple, which has denied trying to escape paying tax, has agreed to pay in the hope it ends an investigation by prosecutors in Milan. It has also signed a deal to ensure its tax affairs are properly monitored in the future.

Apple will pay the tax agency 318 million euros and will sign an accord for fiscal years 2015 onwards early next year

Italian tax office source

Apple is one of several companies, including Google and Amazon, to become the target of tax inquiries in Europe. In Italy, tax authorities have pledged to crack down on domestic and multinational companies in moves that could help shore up stretched public finances. The tax office confirmed that it had reached a deal with the iPhone maker but declined to say how much it had agreed to pay. A source said while the judicial probe, which also regards three Apple managers, remained open for now, the settlement with the tax agency would be likely to have a positive impact on the investigation. Apple could not immediately be reached for comment.

We pay every tax dollar we owe

Apple chief executive Tim Cook

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