Google has agreed to pay €326 million to settle a tax dispute with Italian authorities, covering sanctions, penalties, and interest for the years 2015 to 2019. The settlement follows allegations that Google Ireland Limited failed to declare and pay taxes on revenue generated in Italy, particularly from advertising sales. Milan prosecutors, who led the investigation, have requested that the case be dropped following the payment. This decision reflects a resolution to claims made by Italy’s Revenue Agency regarding unpaid taxes during the specified period.
This is not Google’s first settlement with Italian authorities. In 2017, the company paid €306 million to resolve a similar tax dispute for the years 2009 to 2013, which also centered on allegations of failing to pay taxes on revenues linked to its operations in Italy.
The settlement highlights ongoing efforts by European countries to address tax practices of multinational tech companies, which often route profits through low-tax jurisdictions like Ireland. While this agreement resolves the immediate dispute, it underscores broader tensions over how digital giants are taxed in Europe.