Google Probed in Italy for Unpaid Taxes Topping $250 Million

  • Total is 20% on revenue company generated last year in Italy
  • Tax agency challenges the period between 2009 and 2013

Google Inc. is under investigation in Italy for allegedly evading taxes totaling about 250 million euros ($273 million) between 2009 and 2013. The total is about 20 percent of sales the U.S. company generated last year in Italy, three people familiar with the case said.

Italy’s financial police will notify Google in a memo about a claim "in the next hours," local news agency Radiocor reported, citing Rossella Orlandi, head of the country’s tax agency. A spokesman for the agency confirmed the quote.

A spokeswoman for Google said the company pays taxes in all countries in which it operates. Google continues to work with authorities, she added. A spokesman for Italy’s tax agency declined to comment about tax claim.

Last week, Google parent Alphabet Inc. agreed to pay 130 million pounds ($186 million) in a tax settlement with U.K. authorities, setting off a backlash as opposition politicians questioned the government’s handling of the case. Google will adopt a new approach for U.K. taxes, and the settlement covers taxes going back to 2005, the company said in an e-mailed statement.

In 2015 the Mountain View, California-based company generated revenue in Italy of about 1.2 billion euros ($1.3 billion), according to another person familiar with the matter, who asked not to be named since the company does not reveal figures for individual countries.