Google agrees to pay Italy €306 million in taxes

Posted May 06, 2017

Its parent company - Alphabet - is to pay that to settle a tax dispute with Italy covered 13 years up to 2015.

Sergio Mazzei, a spokesman for the Italian revenue agency, said Google will now begin to pay a tax in Italy on the basis of its domestic revenue.

The amount covers the period between 2002 and 2015 and refers to Google Italy and Google Ireland, Google and Italy's tax agency said.

Italian revenue agency spokesperson Sergio Mazzei said Google will start paying tax in Italy based on its earnings inside the country.

Google and other American companies in Europe are often accused of using tricks to avoid paying higher taxes by funneling income through lower tax countries like Ireland.

The settlement comes after reports in January found that Google had offered to pay a tax bill of up to €280m to Italy's tax authorities. The biggest controversy on European soil concerns the record amount of $ 14.2 billion, a tax that Ireland has ordered to demand from Apple.

The US-based company has previously said it complied with tax rules in all the countries it operates in.

Last year, Finance minister Michel Sapin said France would not negotiate with Google.

It comes just two years after Apple coughed up €318 million for taxes owed to the Italian authorities.

While changes to the tax system are at an early stage in Washington, some European policy makers worry that such repatriation would allow United States companies to avoid paying their fair share of tax in Europe, an accusation that tech industry officials reject.

Google is now facing another case in France where the authorities believe it owes €1.6 billion in back taxes.