Google will pay 306 million euros to the Italian Revenue Agency

This is the outcome of the tax settlement signed by Italy’s Revenue Agency and Google to solve potential tax disputes concerning the fiscal investigations, conducted by the “Guardia di Finanza” – Italy’s Financial Police – and co-ordinated by the “Procura” – Prosecutor’s Office – of the Republic in Milan, for the period between 2002 and 2015. In addition to the taxes payed for those years Google will pay € 306 million. The amounts refer to both Google Italy and Google Ireland. Ms Rossella Orlandi, the Director of Italy’s Revenue Agency, commented very positively on the tax settlement with Google, which in her words represents an outstanding result in terms of the tax revenues referring to the past and those expected in the future. With Google will start a process towards the adoption of Advanced Pricing Agreements (APA) according to the OECD guidelines for Multinational Enterprises and Tax Administrations for the correct taxation in Italy of future activities conducted in that country. The OECD recommends the adoption of measures to settle tax disputes. The APA process is not mandatory and can be undertaken at the request of an enterprise.