Italian tax officials are hailing their victory in a case against Apple Inc. The company has reportedly agreed to pay 318 million euros ($347 million) to settle a dispute over allegations that it failed to pay taxes for six years.

There have been allegations that Apple failed to pay corporate taxes amounting 879 million euros in 2008-2013 by reducing its taxable income when it booked profits generated in Italy through its Irish subsidiary, which charges lower corporate income taxes.

Like Us on Facebook

Tim Cook, the Apple chief executive, called the case "political crap." He also stated that "Apple pays every tax dollar it owes."

Apple has made no comments on this matter. However, Italian tax officials confirmed the details of the settlement agreed upon by Apple Inc.

This settlement is said to be significant because it is the first time a major multinational technology company has agreed to pay a major tax bill to a European country on money that has been declared in another European country.

When European Competition Commissioner Margrethe Vestager announces her findings, the Cupertino-based company known for the Macintosh line of computers, iPhone and iPad could get more bad news.

Amazon.com, Google Inc., Facebook Inc., software icon Microsoft Inc., and online auction leader EBay Inc. are among the companies that are garnering unwanted attention from Italian tax authorities. Apple's settlement may set a predecent for these tech giants.

The development in Italy may have scared some investors. Apple stock lost nearly 3 percent of its value in the two trading sessions after news of the settlement broke.

TagsApple Inc., Apple News, Tim Cook, Tax settlement, Italy