Italian prosecutors announced that they plan to dismiss a tax evasion investigation involving Google, following the tech behemoth’s agreement to pay a settlement of EUR326 million ($340 million).
Background of the investigation
Milan prosecutors had initiated an inquiry into Google’s failure to fulfill tax obligations on earnings generated in Italy from 2015 to 2019. This investigation primarily scrutinized revenues arising from advertising sales and highlighted the existence of servers and other infrastructure located within Italy.
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Previous settlements and disputes
In prior instances, Google has faced significant financial repercussions due to similar allegations. Notably, the tech giant previously paid over $1 billion to French authorities to resolve a lengthy dispute concerning claims of tax fraud. Furthermore, in 2017, Google settled a previous case by paying EUR306 million, which confirmed that it maintained a permanent presence in Italy.
Broader implications for global corporations
Like many other multinational corporations, Google has encountered comparable disputes across various European nations, including France and the United Kingdom. In these cases, governments have taken measures to ensure that large companies contribute adequately to their respective national economies.
The current settlement arrives at a time when European Union officials are advocating for more stringent regulations on technology firms, alongside fairer taxation policies aimed at curbing the escalating influence of multinational corporations.
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