Apple to pay Italy €318 million to settle tax fraud probe

US-based computer tech giant, Apple has agreed to pay Italy 318 million euros (USD 348 million) to settle a tax dispute after the company came under investigation for suspected fraud.

According to Italy’s tax agency on Tuesday, the company’s Italian subsidiary and a number of its senior executives have been under investigation for fraud.

Fraud charges were leveled against Apple after it failed to comply with its obligations to declare its earnings in Italy between 2008 and 2013, AFP reported.

According to Italian daily, La Repubblica, Apple Italia was expected to pay a corporate tax of 880 million euros for the above period. However, after months of negotiations, the tax authorities agreed to close the case in return for the payment of 318 million euros by the company.

The spokesman of Italy’s tax office confirmed that the newspaper’s report was accurate but did not accept to reveal further details of the case.

Apple Italia did not respond immediately to a request for comment on the case which is likely to set a precedent for other European countries’ that deal with the company.

The dispute settlement comes against a backdrop of mounting controversy over the tax arrangements of multinational corporations that use cross-border corporate structures to reduce their tax bills.