American internet giant Google has agreed to pay 326 million euros (approximately 1.5 billion ringgit) in settlement money to resolve allegations of tax evasion brought against the company in Italy.
According to a report by Agence France-Presse, the Italian prosecutor stated on the 19th that under the agreement, Google will pay 326 million euros in taxes, fines, and interest to settle pending matters with the Italian tax authorities. The Italian prosecutor said they have submitted an application to the court to withdraw the lawsuit.
Italian prosecutors accused Google of failing to declare and pay taxes on its income in Italy from 2015 to 2019, based on the company's digital infrastructure in Italy.
This is not the first time Google has paid settlement money for tax litigation in Europe. In September 2019, the Paris High Court announced that Google had reached a settlement with the French judiciary, paying nearly 1 billion euros in fines and taxes to settle lawsuits brought over alleged tax evasion.
It is reported that some large American internet companies, including Google, have set up their European headquarters in Ireland, due to the relatively low corporate tax rates that attract foreign enterprises to the country.