Apple‘s tax practices have long been under criticism, with CEO Tim Cook even commenting during a recent 60 Minutes interview that accusations that the company goes to great lengths to avoid corporate taxes are “total political crap.” However, that doesn’t mean governments have to feel the same, with Italy saying that Apple failed to declare its full earnings in the country. The company has now agreed to a settlement in the investigation, and will pay 318 million euros, or roughly $347 million.
The Italian government conducted a probe into Apple’s local earnings between 2008 and 2013. Regulators concluded that the company should have paid about 880 million euros in corporate tax, but only paid 30 million euros.
The company was in turn accused of recording profits made in Italy under an Irish subsidiary in order to get away with paying the latter’s cheaper tax rate. Italy’s corporate tax rate stands at 27.5%, while Ireland’s is only 12.5%, making it one of the lowest in all of the EU, also explaining why Apple’s European headquarters is located in the country.
While Apple has yet to issue a formal statement about the payment, the company has always said that it pays all the taxes it owes in every country it operates in, with Cook telling Charlie Rose in the 60 Minutes interview that “there’s no truth behind” the idea that they’ve plotted out ways to avoid corporate tax.