Apple Italia, Italian chapter of American tech giant, has agreed to pay €318m (£234m/ $348m) to settle a tax dispute with local tax authorities. The prosecutors in Milan are believed to get convinced in one- third of tax amount and signing a deal on new tax accord for fiscal years 2015 onwards, early next year.

Earlier, the iPhone and iPad maker has been investigated by the Italian Tax authorities for suspected fraud of dodging tax for €880m (£650m/ $963m) in between 2008 and 2013. Besides Google and Amazon, Apple is one of several companies to become the target of tax inquiries in Europe and beyond.

The tax dodging has been carried over reducing its taxable income when it booked profits generated in Italy through its Irish subsidiary. The settlement comes amid widespread criticism over the tax arrangements of multinational groups which stand accused of utilizing complex cross-border corporate structures to reduce tax bills, reports BBC.

Apple Italia is part of the company's European operation which is headquartered in Ireland where large portions of the group's worldwide profits have been booked. Ireland taxes corporate earnings from normal business activities @ 12.5%, which compares with a standard @ 27.5% in Italy and other countries of EU, reports The Guardian.

The decision to sanction Apple Italia marks a huge blow by Italian authorities to shake off the country's bad image for allowing tax dodging, accounted for more than $90 bn a year. Recent efforts by Matteo Renzi's government have convinced both individuals and companies to boost the state coffers.

The settlement deal won't halt the ongoing investigations. But inclusion of three former Apple Executives in the investigation team has drawn widespread criticism and probably will reduce the severity of any potential sanctions.

The agreement with Italy comes as 'an EU tax ruling on Apple's dealings with Ireland' is looming. The EU last year accused Ireland of evading international tax rules by letting Apple to hide profits worth tens of billions of dollars from revenue collectors in return for maintaining jobs.

The ruling could have a "material" impact on Apple if it was determined that Dublin's tax policies represented unfair state aid, forcing the U.S. company to pay past taxes for up to 10 years, reports Venturebeat quoting la Republica.

Apple CEO, Tim Cook, has earlier rejected accusations of sidestepping US Taxes by stashing cash overseas. But agreement to pay tax in Italy may pave US government to raise its allegations again with greater vicinity.

Apple Italia, Italy chapter of Apple Inc. has settled a tax dispute with Italian authority to pay $ 348 m as unpaid tax for the period of 2008 to 2013 and also agreed to sign an accord on Tax calculation for fiscal 2015 and onwards. Unlike other tech giants, Apple is also accused by the Federal tax authority for dodging Tax through amassing wealth in Ireland. The agreement may pave US authority the way to point fingers with proven facts.