Google has settled a long-running tax dispute in Italy by paying €326 million (US$339.4 million). Italian authorities confirmed the settlement on Wednesday. The payment resolves allegations of unpaid taxes between 2015 and 2019. Milan prosecutors launched an investigation into Google Ireland Limited after Italy’s revenue agency found tax irregularities.
Background of the Case
The dispute began when Italian tax authorities discovered Google had failed to declare income and pay taxes. Prosecutors in Milan started investigating the company’s business operations and tax compliance. The investigation focused on revenues generated from advertising sales. Finance police worked closely with tax authorities to assess Google’s tax records.
Settlement Agreement
After negotiations, Google agreed to pay €326 million, covering taxes, fines, and interest. Milan Chief Prosecutor Marcello Viola confirmed the agreement. The final protocol was signed on 28th January 2025. Shortly after, officials submitted a formal request to dismiss the case. The resolution marks another step in Italy’s crackdown on tax evasion by global companies.
Previous Tax Settlements
This is not Google’s first tax dispute in Italy. In 2017, the company paid €306 million to settle a similar case. Other tech giants, such as Amazon, Apple, and Facebook, have faced investigations. European authorities continue to scrutinize multinational corporations’ tax strategies.
Impact on Tech Companies
This case highlights Italy’s strict approach to corporate tax compliance. Governments worldwide are demanding fair taxation from digital companies. Multinational corporations must rethink their tax structures and legal strategies. Stronger regulations could lead to more financial settlements in the future.
