Italy’s IRS has confirmed that Google is ready to pay $ 335 million to cover taxes for 2009 to 2015. The company made a similar deal with the United Kingdom one year ago, providing $ 185 million to the UK tax authorities.
Sergio Mazzei, a spokesman for the Italian revenue agency, said Google will now begin to pay a tax in Italy on the basis of its domestic revenue.
Google and other global giants such as Apple (AAPL, Tech30) and Starbucks (SBUX) have been accused of transferring profits from their sales across national borders to avoid paying high corporate tax rates. They have established regional headquarters in countries such as Ireland, Luxembourg and the Netherlands, where taxes are much lower.
However, the reactions to the issue are increasing and world leaders have begun to follow the voters’ demands to lift tax immunity. The biggest controversy on European soil concerns the record amount of $ 14.2 billion, a tax that Ireland has ordered to demand from Apple.
The European Commission, in a statement, says the Irish government has helped the tech giant to artificially reduce taxation for more than 20 years. The French tax authorities have also chased Google, and the police have invaded its offices in the country. Finance Minister Michel Sapin said last year that France will not negotiate with Google but will follow the court. “We do not make deals like Britain,” Sapin said.
According to the French government, Google owes $ 1.8 billion to unpaid taxes. Italy – which has a higher tax rate of just over 31% – also agreed on a similar tax agreement with Apple in 2015, worth $ 348 million. The payment was made to cover unpaid taxes in the country from 2008 to 2013.