Apple investigated over tax fraud in Italy

Milan prosecutors were investigating the Italian subsidiary of Apple for alleged fraud of around one billion euros (1.3 billion U.S. dollars), local reports said on Wednesday.

The California-based tech company was suspected of underestimating its taxable income from 2010 to 2011, according to l'Espresso weekly.

Earlier this year, Apple was accused of evading billions of dollars in U.S. taxes by using Ireland as a tax haven.

According to reports, U.S. investigators uncovered a sophisticated scheme involving the creation of an international web of subsidiaries. Apple has denied any wrongdoing.

In Italy, where tax authorities have become more attentive on tax dodging by multinationals, the iPhone maker was the latest prominent corporation to become the target of a tax probe.