Apple Inc. will pay the tax office of Italy 318 million euros ($348 million), following the tax fraud allegations investigation.

To settle the tax dispute, Apple agreed to pay Italy's tax office 318 million euros and also confirmed that will sign an accord next year on how to manage its tax liabilities onward.

"Apple will pay the tax agency 318 million euros and will sign a new tax accord for fiscal years 2015 onwards early next year," a source confirmed to Reuters.

The tax agency declined to comment about the latest news. Apple also refused to comment nor give details about the reported arrangement.

The settlement came after Italy's tax officials alleged that the maker of iPhones and iPads failed to pay their taxes for six years, La Repubblica previously reported.

Apple Italia is part of the company's European operation which is headquartered in Ireland and investigators said they found a huge gap between their revenues of over €1bn between 2008 and 2013 and they found out the €30m was paid in tax in Italy.

Italy's tax authorities have been busy lately, targeting multinational companies operating in Italy. They have been investigating big companies, who were accused of using cross border structures to reduce tax bills. With an aim to fix the countries finances, tax authorities have investigating firms who might have failed to pay their taxes.

Italy is among of the countries who has the highest level of tax evasion in the European Union with a total amount of more than €90 billion a year, as per The Wall Street Journal.

Apple's activities in Ireland are currently subject for investigation. Other companies who are currently target for tax inquiries in Europe are Google and Amazon.

Dutch authorities has also received an order from the European Commission to recover 30 million euros from U.S. coffee chain Starbucks for their tax deal.