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Google agrees to pay Italy €306 million in taxes

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.

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

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.

READ ALSO: Italians are Europe's worst tax cheats (again…)Italians are Europe's worst tax cheats (again...)
Photo: FuFuWolf/Flickr

 

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MONEY

Italy expands €200 payment scheme and introduces public transport bonus

Italy's government will extend its proposed one-time €200 benefit to more people and introduce a €60 public transport payment, Italian media reported on Thursday.

Italy expands €200 payment scheme and introduces public transport bonus

Seasonal workers, domestic and cleaning staff, the self-employed, the unemployed and those on Italy’s ‘citizens’ income’ will be added to the categories of people in Italy eligible for a one-off €200 payment, ministers reportedly announced on Thursday evening.

The one-time bonus, announced earlier this week as part of a package of financial measures designed to offset the rising cost of living, was initially set to be for pensioners and workers on an income of less than €35,000 only.

However the government has now agreed to extend the payment to the additional groups following pressure from Italy’s labour, families, and regional affairs ministers and representatives of the Five Star Movement, according to news agency Ansa.

Pensioners and employees will reportedly receive the €200 benefit between June and July via a direct payment into their pension slip or pay packet.

For other groups, a special fund will be created at the Labour Ministry and the procedures for claiming and distributing payments detailed in an incoming decree, according to the Corriere della Sera news daily.

One new measure introduced at the cabinet meeting on Thursday is the introduction of a one-time €60 public transport bonus for students and workers earning below €35,000. The bonus is reportedly designed to encourage greater use of public transport and will take the form of an e-voucher that can be used when purchasing a bus, train or metro season pass.

Other provisions reportedly proposed in the energy and investment decree (decreto energia e investimenti), which is still being adjusted and amended, include extending energy bill discounts, cutting petrol excise duty and rolling on the deadline to claim Italy’s popular ‘superbonus 110’.

The €14 billion aid package, intended to lessen the economic impact of the war in Ukraine, will “fight the higher cost of living” and is “a temporary situation”, Prime Minister Mario Draghi has said.

The Local will report further details of the payment scheme once they become available following final approval of the decree.

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