Alphabet Inc.'s Google has agreed to pay around EUR306 million ($334 million) in back taxes to Italy's tax authorities, bringing an end to a dispute that has dragged on a year and a half between the tech giant and local authorities as well as capping the amount and terms of its settlement.
The agreement signed on Thursday relates mainly to corporate taxes the Italians accused Google of having not paid over the course of 2009 and 2015 by routing more than EUR1 billion in Italy-based revenue to its office in Ireland and to an old dispute relating to the period of 2002 and 2006.
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The deal will also pave the way for more agreements that Google pays taxes on future income it produces in Italy.
"Google and the Italian Revenue Agency have reached a settlement, resolving a tax inquiry for a period between 2002 and 2015 without litigation," a Google spokesman said in an emailed statement. "We remain committed to Italy and will continue to help grow the online ecosystem."
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(END) Dow Jones Newswires
May 04, 2017 08:45 ET (12:45 GMT)