Prosecutors Seek to Drop Case After Settlement
Google has agreed to pay €326 million ($340 million) to settle a tax evasion investigation in Italy, prompting prosecutors in Milan to seek the dismissal of the case.
The investigation focused on Google’s failure to pay taxes on earnings generated in Italy between 2015 and 2019. Prosecutors alleged that the tech giant owed taxes on revenue from advertising sales and cited the presence of servers and other infrastructure in the country as evidence that Google had a taxable business operation in Italy.
Google Resolves Tax Dispute Without Litigation
In a statement, Google acknowledged the settlement and said the agreement resolves the tax audit “without litigation.” The company did not admit wrongdoing but agreed to the payment as part of the resolution.
Google’s History of Tax Disputes in Europe
This is not the first time Google has faced scrutiny over its tax practices in Europe. In 2019, the company paid over $1 billion to French authorities to settle a yearslong dispute over allegations of tax fraud. Other multinational tech firms, including Apple, Amazon, and Facebook, have also faced investigations and hefty fines from European regulators for alleged tax avoidance strategies.
Italy’s Ongoing Crackdown on Corporate Tax Avoidance
Italian authorities have been actively pursuing major corporations over alleged tax evasion. In recent years, Italy has reached settlements with other tech giants, including Apple and Amazon, as part of a broader effort to recover lost tax revenue from multinational companies operating in the country.
With the settlement, Italian prosecutors are expected to formally request that the case against Google be dropped, allowing the tech company to move forward without further legal action in Italy.
