Apple was found to have been attributing profits generated in Italy to its company in Ireland which lowered its taxable income in the country. Ireland's corporate tax rate is normally about 12.5% compared to Italy's at 27.5%.
A spokesman for Italy's tax office confirmed the accuracy of the report to the Guardian but wouldn't comment any further.
The settlement comes as Apple's agreement with Ireland for a lower tax rate is under investigation by the European Union. The Commission recently deepened its probe into whether Ireland offered illegal preferential tax terms to Apple. Tim Cook says Apple will stay in the country even if the EU rule against Ireland's tax agreement with the company, noting there is no "special deal" in place and that Apple is paying 12.5% on all revenue generated there.
Read More [via Guardian]