Google has agreed to pay the internal revenue agency €306 million in taxes, sources said Thursday. The Mountain View-based company has been under investigation by Milan prosecutors for the tax years 2009-2013, one of several European probes looking into the tax practices of international companies.
A Google spokesman said the deal "resolved without disputes investigations relating to the period between 2002 and 2015". He said "in addition to the taxes already paid in Italy for those years, Google will pay another 306 million euros." Of these, "over 303 million are attributed to Google Italy and less than three million to Google Ireland." The spokesman said Google "confirms its commitment towards Italy and will continue to help the country's online ecosystem grow".
Last year, the search giant handed over €150 million, or $168 million, in a similar settlement with the British tax authorities, although critics said the clawback should have been bigger.
Italy's tax agency said: "We have also begun the process of drawing up an agreement that will ensure Google pays the correct taxes in Italy in the future."
The tax authority, which agreed a similar deal with Apple in 2015, added that it is committed to cracking down on the fiscal behaviour of technology giants in Italy. Apple paid €318m for taxes due between 2008 and 2013.
Internal revenue chief Rossella Orlandi said the deal had been "an extraordinary operation and a basis for future ones". And she added "we made a fundamental step forward, as the result of great teamwork".
The Italian authority reportedly started proceedings against Amazon last week, which it estimates could owe €130m for passing its earnings through Luxembourg.
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