Apple has agreed to pay Italy 318 million euros ($348 million) as settlement for a tax dispute after the company was investigated for suspected fraud, the country’s tax agency said Tuesday.
Italian authorities have determined that Apple was illegally shielding its taxable income by funneling cash through its Irish subsidiary, and are forcing the American company to pay up.
According to Italian prosecutors, Apple did not pay 880 million euros ($958 million) in owed taxes between 2008 and 2013 with the Double Irish scheme, which allowed the company to take advantage of incredibly low tax rates in exchange for creating jobs in Ireland.
The company’s Italian subsidiary and several of its senior executives had been under investigation for fraud over this alleged failure to comply with obligations to declare its earnings in Italy between the stated period. Even though Apple apparently won’t be forced to pay back the full amount, it has signed a deal with the Italian government to settle its case for 318 million euros ($348 million).
A spokesman for the tax agency confirmed the newspaper’s report was accurate but would not divulge further details.
