Google agrees to $340 million settlement amid Italian tax evasion investigation

Google has agreed to fork out €326 million (around $340 million) following an investigation into tax evasion, it has been claimed.

The tech giant has been up against prosecutors in Milan for several months over its alleged failure to pay tax on its earnings in Italy between 2015 and 2019. A probe was launched by officials, which looked specifically into revenues created from advertising sales.

The claim is based on the ‘digital infrastructure’ Google has in the country and follows a 2017 settlement of €306 million (around $319 based on modern-day conversation rates) after it was ruled the company does have a permanent presence in the country.

According to AP, Google acknowledged the settlement, stating it has resolved a “tax audit… without litigation”. Prosecutors added in a statement that the agreement covers sanctions, penalties and interest incurred during the four-year period.

The payment comes after Italy asked the firm for more than $1 billion in unpaid taxes and penalties last year. Back then, a Google spokesperson said: “We comply with tax regulations in all countries where we operate, including Italy. We cooperate with the authorities.”

Google Maps has adopted the "Gulf of America" change. Apple Maps has not. pic.twitter.com/JNowrb57lm

— Mike Baker (@ByMikeBaker) February 11, 2025

In another blow to Google, Mexico is reportedly preparing a legal lawsuit against the company over the use of its “Gulf of America” label on Google Maps.

As we previously reported, Mexican President Claudia Sheinbaum warned her administration will proceed with legal action if Google is not willing to change the detail to show the “Gulf of America” as only covering the body of water under United States jurisdiction.

“We’re talking about 22 nautical miles, not the entire gulf,” she explained. However, Google states it has a “longstanding practice” of applying name updates when they’ve undergone a change in an “official government source”.

Google has been approached for further comment in relation to its tax settlement with Italy.

Featured image: Creative Commons

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