dglobalnews.com Google agrees to pay $335 million in Italy tax dispute
Published: Sat, May 06, 2017
Markets | By Armando Jensen

Google agrees to pay $335 million in Italy tax dispute

Google agrees to pay $335 million in Italy tax dispute

The figure also included smaller amounts from disputes between 2014 and 2015 as well as between 2002 and 2006.

Italy's tax agency said that talks would begin on signing "preventive agreements" to ensure the company pays the correct tax in the future. Of these, "over 303 million are attributed to Google Italy and less than three million to Google Ireland".

Sergio Mazzei, a spokesman at the Italian revenue agency, said Google will now begin paying tax in Italy based on the revenue it makes inside the country.

Nearly 303 million of the 306 million paid by Google to the Italian authorities has been attributed to Google Italy while the other 3 million is attributed to Google Ireland. Facebook didn't immediately reply to requests for comment. We remain committed to Italy and will continue to help grow the online ecosystem'.

US trade deficit narrows in March
Trade figures also carry political implications as President Donald Trump seeks to revamp USA trade deals with other countries. The president says trade deficits are responsible for the loss of hundreds of factories and millions of manufacturing jobs.

The U.S. company has previously said it complied with tax rules in every country it worked. The payment was made to cover unpaid taxes in the country from 2008 to 2013.

But Apple and the Irish government are appealing a separate $14 billion tax charge levied by the European Commission, the executive arm of the European Union, which said the company owed more tax on its businesses in Ireland.

Attention will now turn to an investigation by French tax authorities that could lead to a bill this year of more than $1 billion for Google. Tax police have told Amazon they believe the company has evaded around EUR130 million of taxes in Italy on EUR2.5 billion in sales effected through the company's Italian website between 2011 and 2015, according to people familiar with the matter.

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