Facebook to pay 100 million euros in Italian tax fraud dispute

Social media giant Facebook has made peace with Italy’s tax authorities

Facebook to pay 100 million euros in Italian tax fraud dispute

Facebook Italy has agreed to “make a payment of more than 100 million euros” to end a fiscal fraud dispute, Italian tax authorities said today.

The accord will “end the disagreement relating to tax enquiries undertaken by the financial police (GdF) at the behest of the Milan prosecutor for the period 2010-2016,” Italy's tax authority said in a statement.

A Facebook spokesman said “we are acting in compliance with the local laws in Italy and in all the countries in which we operate and we will continue to collaborate with all the Italian authorities.

“We are proud of our commitment to Italy to spur the growth of local businesses and the digital ecosystem as a whole.”

Italy has already drawn similar agreements from Amazon, Apple and Google, joining EU neighbours seeking a bigger tax take from multinationals previously able to use loopholes allowing the booking of profits in countries with more favourable tax regimes.

Online retail behemoth Amazon agreed a similar deal last December while in May last year Google agreed to pay 306 million euros to end a dispute relating primarily to 2009-2013 profits booked in Ireland.

Ireland has one of the lowest corporate tax rates in the European Union.

Apple had earlier, in December 2015, agreed to make payment of more than 300 million euros on Italian-generated profits dating back to 2008.