Alphabet's Google unit (GOOGL) said Thursday that it will pay $334 million, or 306 million euros to settle an issue with Italy's tax authority.
However, the arrangement may not benefit the United Kingdom, which has already accepted a much reduced, £130 million deal with Google previous year for lost tax revenue over...
"The settlement with Google's Italian and Irish subsidiaries covers the 2002 to 2006 and 2009 to 2015 periods".
"Of this, over 303 million has been attributed to Google Italy and less than 3 million attributed to Google Ireland".
Nearly 303 million of the 306 million paid by Google to the Italian authorities has been attributed to Google Italy while the other 3 million is attributed to Google Ireland. As part of the deal, Google will agree to pay taxes on future income - largely related to advertising sales - generated in Italy, according to Italian tax authorities.
The latest payment is in addition to taxes Google has already paid in Italy over the period. We remain committed to Italy and will continue to help grow the online ecosystem'. "We need firmer worldwide rules governing digital companies and better dialogue between countries where they operate".
The biggest outstanding dispute in Europe concerns a record breaking €13 billion ($14.2 billion) tax bill that Ireland has been ordered to serve Apple.
The European Commission estimated at the time that EU loses as much as €70 billion per year due to corporate tax avoidance.
While changes to the tax system are at an early stage in Washington, some European policy makers worry that such repatriation would allow USA companies to avoid paying their fair share of tax in Europe, an accusation that tech industry officials reject.