The US tech giant's Italian subsidiary has been under investigation for allegedly failing to comply with obligations to declare its earnings between 2008 and 2013 to the authorities. It was claimed that Apple should have paid €880m (£649m) in taxes for the period but after months of negotiations authorities agreed to close the case in return for a smaller amount, according to Italy's La Repubblica newspaper.
A spokesman for the tax office confirmed the report was accurate but did not give further details of the case. Apple Italia did not immediately comment. Apple Italia is part of the US firm's European operation, based in Ireland – which has one of the lowest levels of corporation tax in the European Union. The settlement comes amid mounting controversy about the tax affairs of multi-national groups.
In Britain, the likes of Google and Starbucks have come under fire over their low tax bills. Most recently the UK arms of international investment banks have been in the spotlight over their tax arrangements as has Cadbury's owner Mondelez. Earlier this month, Apple boss Tom Cook described accusations that it was sidestepping US taxes by stashing cash overseas as "political crap" and insisted: "We pay every tax dollar we owe."