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Apple exec avoids jail over Italian tax arragements

October 27th, 2016 at 9:00 PM
Apple Tax Case

A criminal investigation into a senior exec at Apple’s European division has concluded with no jail time, but a rather hefty fine. Italian prosecutors have been investigating Apple’s tax dealings through Apple Sales International, the Irish-based unit that controlled much of Apple’s European profits.

According to Reuters, a settlement has now been reached, with the potential six-month jail term for the Apple exec converted into a $50,000 fine instead.

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Reuters sources claim that the prosecutors have reached a settlement with Apple, which converts the potential six-month jail sentence into a 45,000 euro fine. Most importantly for Apple (and the executive), the settlement does not mean an admission of guilt.

Apple itself first had issues with Italian tax authorities back in 2013, with investigations being opened into withheld taxes from 2010 and 2011. Apple eventually paid the full $347 million that Italian tax authorities claimed they were owed, and now the case has been settled against the Apple exec, that should be the end of Apple’s issues with Italy.

Its European tax situation is far from solved, however. Earlier this year, an investigation by the European Commission accused Apple of using tax mechanisms in Ireland to evade paying the true corporate tax rate, paying fractions of a percentage point instead. Apple denies any wrongdoing, but banks have put Apple’s potential liability for the case at over $19 billion.

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