Italian prosecutors announced they would seek to drop a tax evasion investigation against Google after the tech giant had agreed to pay a settlement of €326 million ($340 million), according to AP News.
The investigation, launched by Milan prosecutors, focused on Google’s alleged failure to pay taxes on earnings generated in Italy between 2015 and 2019. The probe specifically examined revenues from advertising sales and highlighted the presence of Google’s servers and other infrastructure in the country as evidence of taxable activity.
In a statement, Google acknowledged the settlement, stating that it resolves “a tax audit … without litigation.” The company emphasised its commitment to complying with tax regulations in the countries where it operated.
The settlement marks another significant resolution in Google’s ongoing efforts to address tax disputes across Europe. Previously, the tech giant paid over $1 billion to French authorities to settle a years-long dispute over allegations of tax fraud.
The agreement with Italian authorities underscores the increasing scrutiny faced by multinational tech companies over their tax practices, particularly in Europe, where governments have been pushing for greater transparency and fair taxation of digital businesses.
By resolving the investigation, Google avoids a protracted legal battle and reinforces its efforts to align with local tax laws while continuing its operations in Italy.
