Italy is seeking 1 billion euros ($1.07 billion) from Google in unpaid taxes and penalties, according to three sources familiar with the matter. This demand comes seven years after Google settled a significant tax dispute with Italian authorities.
The Italian Revenue Agency has initiated an adversarial process with Google, which could lead to a settlement or potentially escalate to judicial litigation. The investigation, launched in December 2022, focuses on tax liabilities from 2018 to 2022. Unlike previous investigations that centered on Google’s personnel in Italy, this new probe targets the digital infrastructure that enables Google to operate and generate revenue within the country.
In 2017, Google paid 306 million euros following a determination that it had a permanent establishment in Italy based on its local workforce. Now, Italian authorities are scrutinizing the digital footprint that allows companies like Google to conduct business and generate income, a tactic similar to recent tax settlements involving other multinational digital companies like Netflix.
If a settlement is reached with Google, the sources indicate that similar investigations may follow for other multinational web companies under scrutiny by Milan prosecutors. Google has stated that it complies with tax regulations in all jurisdictions where it operates and is cooperating with Italian authorities in this matter.
Source: Reuters