Google Pays 326 Million Euros to Italy to Settle Tax Dispute
Italy’s Tax Authority Cracks Down on Tech Giant
ROME: Tech giant Google has paid 326 million euros to Italy following an investigation into alleged unpaid taxes, Milan prosecutors said Wednesday, as they recommended criminal proceedings be dropped.
Background of the Investigation
Italian authorities had accused Google Ireland Limited of failing to declare and pay taxes on income generated in the country between 2015 and 2019, with the probe focusing particularly on revenues obtained through selling advertising space.
Agreement Reached with Google
Under an agreement reached with Google, "the company proceeded to payment of… 326 million euros in taxes, fines and interest, to resolve the outstanding matter with the Italian tax authorities", Milan prosecutors said in a statement.
Criminal Proceedings Dropped
As a result, the prosecutors said they have submitted to a judge a request to dismiss criminal proceedings in the case.
The EU’s Struggle to Get Tech Companies to Pay More Taxes
The European Union has had little success in getting tech companies to pay more taxes in Europe, where they are accused of funnelling profits into low-tax economies like Ireland and Luxembourg. This is not the first time a major tech firm has been accused of tax evasion. In one of the most notorious cases, the European Commission in 2016 ordered Apple to pay Ireland more than a decade in back taxes – 13 billion euros – after ruling a sweetheart deal with the government was illegal. However, EU judges overturned the decision, saying there was no evidence the company had broken the rules, a decision the commission has been trying to reverse ever since.
Another Court Loss for the EU
The commission is also fighting to reverse another court loss, after judges overruled its order for Amazon to repay 250 million euros in back taxes to Luxembourg.
Conclusion
In conclusion, Google’s payment of 326 million euros to Italy is a significant development in the ongoing battle between tech giants and tax authorities. While the company’s payment may resolve the outstanding matter with the Italian tax authorities, it does not address the broader issue of tax evasion by tech companies in Europe.
Frequently Asked Questions
- What is the amount Google paid to Italy to settle the tax dispute?
- 326 million euros
- What period of time did the tax dispute cover?
- 2015-2019
- What is the focus of the probe?
- Revenues obtained through selling advertising space
- What is the outcome of the investigation?
- Criminal proceedings dropped, with Google paying 326 million euros in taxes, fines, and interest