The Italian Revenue Agency has started the process of requiring Google to pay overdue taxes and penalties totaling one billion euros, or $1.07 billion. This is the result of an inquiry that was launched in December 2022 and focused on the years 2018 through 2022. Seven years have passed since Google and the authorities in Rome reached a big tax dispute settlement.
Prosecutors in Milan are leading this latest inquiry, which asserts that Google neglected to report and pay taxes on income earned in Italy. The present issue is centered on Google’s digital infrastructure in Italy, which supports its operations and income production, as opposed to the first case, which was about Google employees establishing a long-term presence in the nation.
In response to the assertion, a Google representative said, “We adhere to tax laws in every nation in which we do business, including Italy. We assist the authorities in our cooperation.”
Google and Italy’s Revenue Agency have started an adversarial procedure that might lead to a settlement or legal action. This strategy emphasizes the digital infrastructure that businesses use to do business in the nation, which is similar to the recent tax settlement that Netflix and Italy reached.
In order to allay allegations that it had a permanent presence in Italy because of its employees, Google paid 306 million euros in 2017. The same guidelines are now being applied to Google’s online presence in Italy by tax officials.