Italy looking at Google
proposal to settle tax dispute: source
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[January 10, 2017]
MILAN (Reuters) - Italy's
tax authorities are looking at a proposal from Alphabet
Inc's Google to pay between 270 million and 280 million
euros ($286-296 million) to settle a tax dispute, a
source close to the matter said on Tuesday.
A man holds his smartphone which displays the Google
home page, in this picture illustration taken in
Bordeaux, Southwestern France, August 22, 2016.
year ago Italian tax police alleged that Google had evaded
paying taxes worth 227 million euros between 2009 and 2013 in a
move which was said could result in heavy punitive fines.
Governments across Europe are looking for ways to change tax
rules which allow multinationals to park profits in other tax
Some countries, including Italy, are also trying to use existing
tax rules to force companies to pay more tax on the profits
generated by sales in their countries.
At the end of 2015 Apple Inc agreed to pay Italy's tax office
318 million euros to settle a dispute over allegations it failed
to pay taxes for six years.
"There was a meeting with Google's lawyers just before Christmas
when the proposal was presented", the source said.
But sticking points to a final settlement include working out
final details on how revenues are booked for tax purposes and
securing a commitment from the U.S. giant to pay taxes in Italy
in the future, the source added.
"Google is continuing to work with the competent authorities," a
company spokeswoman said.
In January last year Google agreed to pay the British government
130 million pounds ($158 million) in back taxes in a deal which
opposition parties in the country criticized as too little in
view of the size of Google's UK revenues.
(Reporting by Emilio Parodi; Writing by Stephen Jewkes; Editing
by Greg Mahlich)
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