Italy Demands Over $1B In Unpaid Taxes From Google

Italy has demanded 1 billion euros ($1.07 billion) in unpaid taxes and penalties from Google (NASDAQ:GOOGL) (NASDAQ:GOOG). This comes seven years after Google settled a similar tax dispute with Rome.

What Happened: Three sources with direct knowledge of the matter disclosed that Italy’s Revenue Agency has begun a confrontational process with Google. This could either result in a settlement or initiate judicial litigation, Reuters reported on Friday.

The investigation, which started in December 2022, spans from 2018 to 2022. The probe claims that Google neglected to file and pay taxes on revenues generated in Italy. The basis for the accusation, however, differs from the previous investigation.

In 2017, Google paid 306 million euros ($327 million) after being found to have a permanent establishment in Italy based on its personnel operating in the country. This time, the issue is centered on the digital infrastructure Google maintains in Italy, which allows it to operate and generate revenue.

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Two sources indicated that if a settlement is reached, the same investigation approach will be applied to all multinational web companies currently under the scrutiny of Milan prosecutors.

Why It Matters: This development follows a series of regulatory challenges faced by Google in Europe. In July 2023, the Italian Competition Authority concluded its investigation into Google’s alleged abuse of dominance, making the proposed commitments binding.

In May, Google was facing the largest tech antitrust trial to date, with a ruling expected to significantly impact the company and the wider tech industry.

More recently, in June, Google was hit with a privacy complaint in Austria over alleged user tracking without proper consent.

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Image via Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari