Google agrees to pay Italy €306 million in taxes

Posted May 06, 2017

The sum also settles other disputes for the tax years 2002-2006 and 2014-2015.

The tax agency said Google also agreed to sign an agreement ensuring "the future correct taxation in Italy" of company activities related to the country.

"Of this, over 303 million has been attributed to Google Italy and less than 3 million attributed to Google Ireland".

Google and other American companies in Europe are often accused of using tricks to avoid paying higher taxes by funneling income through lower tax countries like Ireland. "Google confirms its commitment to Italy and will continue to work to help grow the online ecosystem of the country".

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The company said the agreement is in addition to taxes already paid in Italy over the period. Apple dashed out 300 million euros to Italian authorities in 2015, while Google closed a $185-million deal with the United Kingdom a year ago. The payment was made to cover unpaid taxes in the country from 2008 to 2013. "We need firmer global rules governing digital companies and better dialogue between countries where they operate".

The Commission past year accused Ireland of helping Apple to artificially lower its tax bill for two decades and ordered the government to claw back a record-breaking €13bn.

The companies insist that they are operating within the law: Apple chief executive Tim Cook memorably termed the notion of his company stashing cash overseas as "political crap".

The French tax authorities have an investigation underway and reportedly will be looking for around one billion euros.