Apple to pay £234m to Italian authorities to settle tax dispute

The settlement follows an investigation for suspected fraud

Apple is expected to sign an agreement about how to manage its tax liabilities

Apple has agreed to pay €318 million (£234 million) to settle a tax dispute with the Italian authorities.

Italy's tax office confirmed the settlement, which follows an investigation for suspected fraud.

Apple will sign an agreement about how to manage its tax liabilities in the new year according to Reuters, which cited a source with direct knowledge of the matter.

The payout comes after Italian prosecutors launched an investigation into allegations that Apple failed to pay around €879 million in corporation tax.

The agreement with Italy's tax office is likely to have a positive impact on the probe, the source told Reuters.

Apple did not immediately respond to requests for comment.

Apple's tax policies are also being examined by the European Union.

The EU is looking into its tax arrangements with Ireland, where it has its European headquarters, to determine whether there was a deal to maintain jobs that would amount to unfair state aid.

A judgment is expected soon.

Google and Amazon's tax affairs have also come under scrutiny by the European authorities.