Apple is under investigation in Italy for allegedly hiding 1 billion euros ($1.34 billion) from the local tax authority, a judicial source with direct knowledge of the matter told Reuters, confirming Italian media reports.
According to Italian magazine "L'Espresso," Milan prosecutors say Apple failed to declare to Italian tax authorities 206 million euros in 2010 and 853 million euros in 2011.
The weekly publication said the Italian subsidiary of Apple booked some of its profits through Irish-based subsidiary Apple Sales International, thus lowering its taxable income in Italy.
"The Apple investigation is under way," the judicial source told Reuters on Wednesday, without giving any further details.
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The Italian subsidiary of Apple did not immediately respond to a request for comment.
The maker of the iPhone is the latest prominent corporation to become the target of a tax inquiry in Italy amid a global crackdown aimed at preventing companies such as Google, Amazon and others from avoiding taxes.
In crisis-hit Italy, tax authorities faced with dwindling revenues have become more aggressive with domestic and multinational companies.