Google Pays €326 Million to Settle Tax Dispute in Italy
Alphabet Inc., the U.S.-based parent company of Google, has paid €326 million to resolve a tax dispute
with Italian authorities, according to a statement from the Milan Public Prosecutor’s Office.
The prosecutor’s office recommended that the preliminary investigation judge close the case following
the settlement. Italian judicial authorities had suspected that Google failed to pay due taxes between
2015 and 2019. After reaching an agreement, the tech giant paid €326 million, covering taxes, fines, and
interest, to end the dispute with Italy’s tax authorities, the statement confirmed.
Details of the Tax Dispute
According to the allegations, Google Ireland Limited, a company registered under Irish law, did not file
annual income declarations for revenue earned in Italy during this period. The income in question
stemmed primarily from the “sale of advertising space,” as noted in the prosecutor’s statement. This
failure to report prompted the investigation by Italian tax officials.
The settlement allows Google to comply with regulations and avoid further legal scrutiny, although the
final decision rests with the preliminary investigation judge.
Broader Context: Google’s Regulatory Challenges in Italy
This tax settlement isn’t Google’s only recent run-in with Italian regulators. In July, Italy’s Competition
Authority launched an investigation into Google and Alphabet over a consent request sent to users for
linking its services. The authority argued that this could constitute a “deceptive and aggressive
commercial practice.”
Additionally, in November 2021, the same authority fined Google and Apple €20 million—split evenly
between the two companies—for “aggressive” practices related to the commercial use of consumer data.
By settling the €326 million tax dispute, Google demonstrates its intent to resolve regulatory issues and
maintain its operations in Italy, a key European market.
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