Google agrees to pay €326 million to settle Italian tax claims

Milan prosecutors have asked for a case against Google’s European subsidiary to be dropped after the company agreed to pay €326 million to settle a tax evasion claim, Reuters reported, citing a statement from the agency.

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The agreement between the Italian authorities and Google’s European office covers the period from 2015 to 2019, and the agreed amount includes sanctions, fines and interest. Last year, it became known that the Italian authorities demanded that Google pay €1 billion in arrears in taxes and fines, and seven years earlier, the American company similarly settled the same claims made by the authorities in Rome.

Milan prosecutors said Google failed to declare or pay taxes on revenues earned in Italy, where the company has a digital infrastructure they deemed a source of income. Google paid €306 million in 2017 to settle a previous case that found the company had a permanent presence in Italy.