Courtesy of ZeroHedge. View original post here.
Submitted by Tyler Durden.
Milan prosecutors ordered the seizure of a substantial batch of computer and telephone equipment from Apple's Italian HQ as part of an investigation into allegations of a one billion euro tax fraud.
As L'Espresso reports, the allegations surround false representation of accounting records (EUR206mm in 2010 and EUR853mm in 2011) which were recorded by the Irish entity 'Apple Sales International' but, Italian authorities suggest were services rendered for business carried out in Italy. Beyond this investigation, it seems the growing tax divergences (and loopholes) that we have previously discussed (such as the Double Irish) are becoming a key focus for an increasingly cash-strapped European periphery (among others).
Via (Google Translate) L'Espresso,
The amounts deducted from the Italian tax authorities, according to initial investigations, it would be very relevant. If the investigative hypotheses are confirmed, Apple would have underestimated Italy of approximately EUR 206 million taxable income in 2010 of more than 853 million as of the 2011 tax year, based on a false representation of the accounting records and using fraudulent means thesis to hinder the investigation.
In practice, in the two years at issue so far, Apple would have concealed from the tax authorities a billion…
…
According to the accusation, the profits made in Italy by Apple were recorded by the Irish company Apple Sales International, following a scheme widely used in other multinational hi-tech and Internet, Google in the first place, due to which these groups fail to pay taxes on their laughable huge profits by taking advantage of a set of rules into Irish law which, recently, have been under observation by the European Union.
On the basis of these findings the deputy prosecutor charge of the investigation Adriano Squires, coordinated dall'aggiunto Francesco Greek, ordered the seizure of a substantial batch of computer equipment and telephone, after a search that took place at the headquarters of Apple in the Piazza San Babila in Milan, in order to find evidence of fraud once the material will be analyzed.
…
The hypothesis is that Apple upstream Italy not only deal with channel support to sales and service and ancillary services to Irish society, but the real heart of the business carried out in Italy. In other words it is that there is a stable organization well concealed behind that light which is instead indicated by Apple. (Emphasis by ZH)
We can't wait to hear what the Irish think…
