Captain LagbeardGoogle’s accountants might need a vacation after this one.
The European arm of the tech behemoth has agreed to hand over a hefty 326 million euros ($340 million) to Italy’s tax authorities, effectively ending what can only be described as a very expensive game of “You Owe Us.”
The Milan prosecutors, who had been on Google’s tail for years, announced on Wednesday that they would be dropping their case now that the company had agreed to cough up the cash.
The settlement covers the years 2015 to 2019, including penalties, interest, and—let’s be honest—a generous serving of frustration on Italy’s part.
A Billion-Euro Bill? Not Quite.
Last year, Reuters reported that Italian authorities had initially come knocking with a demand for a cool 1 billion euros in unpaid taxes and penalties.
But after what we assume were some very tense meetings filled with legal jargon and sighs of resignation, the two sides settled on a slightly less terrifying 326 million euros.
Still a hefty sum, but hey, at least Google isn’t completely emptying its piggy bank.
Italy’s Long-Standing Feud with Google
Italy’s tax authorities had accused Google of making money in their country without properly reporting and paying taxes on that revenue.
The key argument? Google’s digital infrastructure in Italy meant it had a “permanent presence,” and thus, a tax bill to match.
It wasn’t the first time Italy had played hardball with the search engine giant.
Back in 2017, Google shelled out 306 million euros in a separate tax settlement over similar claims.
What Now?
With the latest settlement, Google can officially put this tax nightmare behind them—at least until the next round of audits begins.
Meanwhile, the Italian government gets to pocket a few hundred million euros, proving once again that no one outmaneuvers the taxman for long.
For those keeping score, Italy is now 632 million euros richer thanks to Google’s past financial “oversights.”
The lesson here? If you’re going to set up shop in Italy, make sure your tax paperwork is as tidy as your coding.
Source
For the original report, check out Reuters: Google Agrees to Pay 326 Million Euros to Settle Italian Tax Case.
