Google to pay $334 million to settle Italian tax dispute

Tech giant Google agreed to pay $334 million to the Italian government to cover a back tax bill, the latest settlement by a USA tech company for business in Europe. The figure also included smaller amounts from disputes between 2014 and 2015 as well as between 2002 and 2006.

For its part, Google says it complies with all local laws and that it already paid taxes in Italy for those years.

A few months after reaching the settlement, the United Kingdom government introduced its Diverted Profits Tax - nicknamed the 'Google Tax - to prevent the practice of multinational organisations shifting profits made in the United Kingdom offshore to avoid paying tax. We remain committed to Italy and will continue to help grow the online ecosystem'.

Google was under investigation by the Guardia di Finanza (tax police) and the prosecutor for booking profits generated in the country in Ireland.

In a statement, Amazon said it pays "all the taxes we are required to pay in every country where we operate".

Google has come to an agreement with the Italian tax office to to pay €306mn to settle a dispute. Facebook didn't immediately reply to requests for comment.

The French tax authorities have an investigation underway and reportedly will be looking for around one billion euros.

Last year, Finance minister Michel Sapin said France would not negotiate with Google. In September, the European Commission ordered Apple to pay record $14.5 billion in tax arrears to Ireland, but Dublin, which benefits from hosting a number of multinationals due to it lax tax regime, has appealed the ruling.