Italy is reportedly seeking 1 billion euros in unpaid taxes and fines from Google, according to three sources familiar with the matter. This comes seven years after the U.S. tech giant settled a significant tax dispute with Italian authorities. Google has stated that it complies with tax regulations in all the countries where it operates, including Italy, and that it is cooperating with the authorities.
The Italian Tax Agency has initiated an adversarial process with Google, which could result in reaching an agreement or legal litigation. The investigation began in December 2022 and covers the years 2018 to 2022. The allegations against Google are related to the failure to declare or pay taxes on revenue generated in Italy. Unlike the previous investigation, the focus this time is on the digital infrastructure that allows Google to operate and earn income in Italy. This approach is similar to a recent tax deal Italy reached with Netflix.
In 2017, Google paid €306 million due to its presence being deemed a permanent establishment in Italy. Now, the authorities are challenging Google’s tax practices based on its digital operations in the country. If a deal is reached, it could set a precedent for other multinational internet companies that are also under scrutiny by prosecutors in Milan.
The situation highlights ongoing efforts by countries to ensure that tech companies pay their fair share of taxes, especially as digital operations continue to play a significant role in generating revenue. Google’s response to the claim emphasizes its commitment to adhering to tax regulations in all regions. The outcome of this dispute could have implications for how other internet companies are taxed in Italy and beyond.
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https://finance.yahoo.com/news/italy-claims-1-billion-euros-103051279.html
