Apple to Pay a Hefty Tax Bill in Italy

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Apple will pay Italy a reported 318 million euros ($348 million) to settle a dispute over the tech giant’s tax liability in the country.

Italy’s tax authority began investigating Apple in 2013 for funneling more than $1 billion in income earned in Italy to an Irish subsidiary. The corporate tax rate in Ireland, at 12.5%, is one of the lowest in the world. Apple did not immediately respond to a request for comment.

European regulators are increasingly cracking down on U.S. firms that try to shift money among countries to lower their taxes. Amazon and McDonald’s are dealing with tax inquiries in Luxembourg, while Starbucks is expected to be forced to pay additional taxes in the Netherlands.

[NYT]

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