Italian probe alleges Google underpaid tax

Nov 28, 2012
A probe by Italian tax authorities into US Internet giant Google's Italian arm has found it failed to declare income of 240 million euros ($310 million) and pay value added tax of 96 million euros.

A probe by Italian tax authorities into US Internet giant Google's Italian arm has found it failed to declare income of 240 million euros ($310 million) and pay value added tax of 96 million euros.

Google Italy rejected the accusations, saying it respected tax laws.

The probe was aimed at "ensuring the correct adherence to tax obligations in Italy," the finance ministry said on Wednesday in response to a question from a lawmaker about Google's activities in Italy, Italian media reported.

The ministry said that Google Italy had a contract with Google Inc. and with Google Ireland, the European division, "pretending that Google Italy only had an auxiliary role, which was not at all reflected in the facts."

It said that Google Italy had only declared payments from . and Google Ireland and had not reported its entire commercial activity.

Google Italy was quoted by La Repubblica daily as saying: " respects the tax laws of all the countries in which it operates."

"We will continue to work with local authorities," it added.

The member of parliament who put the question to the government, Stefano Graziano from the centre-left Democratic Party, said: "This time of such deep economic crisis demands greater force and determination.

"Otherwise Italian companies will be at a definite disadvantage compared to those that are based in countries with a more advantageous tax regime."

Explore further: Mexico City proposes regulations for Uber

Related Stories

French authorities probe Google's tax bill

Mar 20, 2012

French authorities are probing Google for potential tax avoidance, a source close to the matter said Tuesday, with the US Internet giant facing a possible bill of over 100 million euros ($132 million).

Google loses appeal against French tax searches

Nov 02, 2012

A Paris appeals court has rejected a request by Internet search giant Google to invalidate the search and seizure of documents by French tax authorities, according to a copy of the decision obtained by AFP ...

Google chairman hopes for France tax deal soon

Nov 05, 2012

Google chairman Eric Schmidt said Monday he hopes his firm will reach a settlement "by the end of the year" with authorities in France in a billion-dollar dispute over taxes.

France eyes 'Google Tax' for French websites

Oct 29, 2012

(AP)—French President Francois Hollande is considering a pushing for a new tax that would see search engines such as Google have to pay each time they use content from French media.

Google 'open to mediation' in France revenue row

Nov 06, 2012

Google said on Tuesday it was open to the idea of appointing a mediator to help end its bitter row with French news media sites that want to make the US Internet giant pay to display links to their content.

Recommended for you

Amazon pushes Prime service with day of deals

4 hours ago

Amazon is trying to lure more subscribers to its $99 Prime loyalty program by pushing a day of discounts it calls "Prime Day" during the sleepier summer shopping season.

Mexico City proposes regulations for Uber

Jul 04, 2015

Mexico City is proposing regulations that would allow Uber and other smartphone-based ride-sharing apps to operate, while requiring drivers and cars to be registered, the city's Office of Legal and Legislative Studies said ...

Shyp reclassifies contract couriers as employees

Jul 03, 2015

Shyp, the quickly growing startup that provides on-demand courier services, said Wednesday it would reclassify its contract workers as employees, becoming the latest high-profile tech company to change how it compensates ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.