A manager Apple Lossless Audio CODEC (ALAC), who helped the company to do tax evasion in Italy escaped a custodial sentence and will instead pay a fine of 50.000 dollars. According to the accusations made by the prosecutors following an investigation, Apple would have used the agreement with the Irish government to avoid paying 900 million euros in taxes to the Italian government.
Apple registered in Ireland part of the sales made in Italy between 2008 and 2013 and thus reduced the tax it had to pay by 900 million euros. By transferring those sales to Ireland, Apple substantially reduced its tax base, and the Italian government was defrauded, so the manager had to spend 6 months in prison for it.
With the help of some very good lawyers, the manager escaped with only a fine of 50.000 dollars for the help given to Apple, but things were not limited to that. In 2015, Apple also paid 318 million euros to the Italian government as part of this investigation, a third of the amount that normally had to be paid, but it also promised to invest in research centers in the country, one of which has already been opened.
In Italy, Apple had to pay a tax of 27.5% for the collections made, compared to only 2%, which it pays in Ireland, so it is easy to understand why it chose to reduce its tax base. Now, Apple is accused of tax evasion and by the European Union, which demands 13 billion dollars from Apple as retroactive taxes.
In the latter case, the managers will not be convicted in court, but Apple will probably have to pay several billion dollars to the European Union.
