Google agrees to pay $335 million in Italy tax dispute

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Alphabet's Google unit (GOOGL) said Thursday that it will pay $334 million, or 306 million euros to settle an issue with Italy's tax authority.

Italian authorities few days ago opened a new investigation against Amazon for allegedly evading 130 million euros (USD 141 million) in taxes between 2011-2015. Tax officials said the settlement announced Thursday also launches a process to determine the tech company's proper taxation level in Italy going forward.

The settlement also puts an end to separate disputes covering the periods of 2002-2006 and 2014-2015. The company says that it has paid its fair share in France but that it is cooperating with the inquiry. Apple dashed out 300 million euros to Italian authorities in 2015, while Google closed a $185-million deal with the United Kingdom past year.

Individual countries and the European Commission have heaped pressure on technology giants to back-pay taxes avoided by booking income in countries such as Ireland and Luxembourg.


Reports at the time said the payment was a discounted settlement of over 800 million euros of unpaid corporation tax, one of several disputes arising from a United States multinational basing European operations in Ireland. Finance Minister Michel Sapin said past year that France will not negotiate with Google but will follow the court.

'This latter point applies the Italian tax code in a way in which the UK's diverted profits tax (unfortunately named the Google Tax) doesn't'.

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

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