Italy has asked Google to pay 1 billion euros ($1.07 billion) in unpaid taxes and penalties, according to local media report seven years after the US corporation settled a historic tax fight with Rome authorities.
“We comply with tax laws in all countries where we operate, including Italy,” a Google representative said in response to a Reuters inquiry about the issue. “We collaborate with authorities.
According to the reports, Italy’s Revenue Agency has begun an adversarial process with Google, which might result in a settlement or the filing of a legal lawsuit.
The inquiry began in December 2022, and the accusations extend from 2018 to 2022.
The Milan prosecutors’ investigation, like the last one, charges that Google failed to file and pay taxes on earnings made in Italy, but the foundation for the accusation is different this time, according to sources.
Google paid 306 million euros in 2017 because it was assessed to have a permanent operation in Italy based on the number of employees there.
The challenge has now been built based on the country’s digital infrastructure, which enables it to function and produce income. This is the same strategy that was employed in a recent Italian tax settlement with Netflix.
According to two different sources, if a settlement is struck, the line of investigation will be expanded to include all global online corporations under investigation by Milan prosecutors.
