Google agrees to pay Italy €306 million in taxes

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Google agrees to pay Italy €306 million in taxes
File photo: Giuseppe Cacace/AFP

Internet giant Google has agreed to pay Italy €306 million in taxes, ending a dispute that has dragged on for over a year, according to reports on Thursday.


Last year, Italy's tax police said Google had failed to declare €100 million in income and pay €200 million in royalty taxes between 2009 and 2013.

"In addition to the taxes already paid in Italy during those years, Google will pay a further 306 million euros," a spokeswoman for the American company said in an email cited by financial daily Il Sole 24 Ore. "Google confirms its commitment to Italy and will continue to work to help grow the online ecosystem of the country."

Italy's tax agency said that talks would begin on signing “preventive agreements" to ensure the company pays the correct tax in the future. 

The initial allegations followed a lengthy investigation into Google's tax arrangements, which saw five Google executives probed, including two former presidents of Google Italia.

Google Italia is part of the company's European operation which is headquartered in Ireland, a country with one of the lowest levels of corporation tax in the European Union.

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Photo: FuFuWolf/Flickr



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