Milan prosecutors have requested the closure of a tax evasion case against Google’s European subsidiary after the company agreed to pay €326 million, Reuters reports, citing an official statement. This settlement follows ongoing disputes over the company’s tax obligations in Italy.
Settlement Details and Previous Disputes
The agreement covers the period from 2015 to 2019 and includes penalties, fines, and interest. Last year, Italian authorities sought €1 billion in unpaid taxes and fines from Google. However, after negotiations, the final amount was reduced. This is not the first time Google has faced such claims in Italy—seven years ago, the company similarly settled a dispute with authorities in Rome.
Milan prosecutors alleged that Google had failed to declare and pay taxes on revenues earned in Italy. Since the company maintains a digital infrastructure in the country, authorities considered it a source of taxable income. In a previous case in 2017, Google reached a settlement of €306 million after authorities determined it had a permanent presence in Italy.
Implications and Future Outlook
This latest resolution allows Google to close another chapter in its tax disputes with Italian authorities, reminds NIX Solutions. However, global regulatory scrutiny of multinational corporations’ tax practices remains high, with governments continuing to push for more stringent tax compliance measures. While this settlement resolves the current case, it may not be the last such dispute involving major tech companies operating in Europe.
We’ll keep you updated as more developments emerge regarding corporate tax policies and regulatory actions in the region.