Google agrees to pay $335 million in Italy tax dispute

Posted May 06, 2017

Last year Italian tax police alleged that Google had evaded paying taxes worth Euro 227 million ($248 million) between 2009 and 2013 in a move which was said could result in heavy punitive fines.

Google has come to an agreement with the Italian tax office to to pay €306mn to settle a dispute.

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"Google and the Italian Revenue Agency have reached a settlement, resolving a tax inquiry for a period between 2002 and 2015 without litigation", a Google spokesman said in an emailed statement.

Google did not immediately respond to a request for comment. Last year, the search giant also handed over $168 million in a similar settlement with British tax authorities, although critics said the clawback should have been bigger.

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In Australia, reports lodged by the Australian arms of the company indicate surges in local income and tax paid as a result of obedience with former treasurer Joe Hockey's Multinational Anti-Avoidance Law. Last August, the commission ordered Apple return $13 billion to Ireland in unpaid taxes.

The Commission past year accused Ireland of helping Apple to artificially lower its tax bill for two decades and ordered the government to claw back a record-breaking €13bn. France's finance minister Michel Sapin said past year that he won't negotiate a deal with Google, but will instead pursue legal action. Apple paid €318m for taxes due between 2008 and 2013.

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Meanwhile, the French authorities accused Google of owing €1.6bn in taxes. Tax police have told Amazon they believe the company has evaded around EUR130 million of taxes in Italy on EUR2.5 billion in sales effected through the company's Italian website between 2011 and 2015, according to people familiar with the matter.