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Google To Pay EUR280m In Back Taxes To Italy: Reports

By Ulrika Lomas,,Brussels
Thursday, January 12, 2017

Google has agreed to pay up to EUR280m (USD296m) to settle corporate income tax said to be due to the Italian Revenue Agency, according to Italian media reports.

One year ago, the Revenue Agency disclosed that the Guardia di Finanza, Italy's financial police, had served notice on Google with regard to its past tax payments in the country.

It was then reported that the Guardia was alleging that Google had a permanent establishment in Italy in the years between 2009 and 2013, and Italian taxes were therefore payable, for example, on the income received from clients in Italy.

The launching of the case against Google followed the agreement made by the Revenue Agency with Apple Italia at the end of December 2015, wherein Apple Italia agreed to pay EUR318m to fully settle Italian corporate income tax said to be due since 2008.