Reports: Italy examining Apple's tax schemes

Italian authorities are investigating whether Apple dodged paying more than $1 billion in taxes by stashing profits abroad, according to multiple news media reports. 

Apple, whose domestic tax practices have already come under fire in the Senate, might have used foreign subsidiaries to help lower its Italian tax bill in 2010 and 2011, according to the reports. 

Italy, which is facing a difficult budget situation, has become more proactive in their tax collection from multinationals. The Italian magazine L'Espresso first reported that authorities were examining Apple.

In a statement, the company told media outlets that it "pays every dollar and euro it owes in taxes and we are continuously audited by governments around the world."

"The Italian tax authorities already audited Apple Italy in 2007, 2008 and 2009 and confirmed that we were in full compliance with the OECD documentation and transparency requirements. We are confident the current review will reach the same conclusion."

Sen. Carl Levin (D-Mich.) released a report in May that said that Apple sought the "holy grail" of tax avoidance in the U.S. – essentially exploiting a loophole that allowed it to pay taxes in neither America nor Ireland for a major subsidiary.