Google denies media reports of tax deal with Italy

Internet giant Google on Wednesday refuted claims by an Italian newspaper claiming the firm reached an agreement to pay to Italy around 320 million euros (363 million U.S. dollars) in dodged taxes.

The newspaper Corriere della Sera reported that Google in a meeting held with experts and fiscal police in Milan agreed to pay the amount on taxable income of 800 million euros (908 million U.S. dollars) produced in Italy in the 2008-2013 period.

"Diplomacy of easing tensions" and "the will to reduce frictions" was behind the agreement, the newspaper wrote.

Milan investigators reportedly found that Google made money on advertising sales in Italy that through a series of operations were subject to taxation in Bermuda.

Corriere della Sera said Google, like other web companies operating in Italy, used to pay taxes in countries offering privileged conditions. In 2013, it only paid 1.8 million euros (2 million U.S. dollars) of taxes in Italy, the newspaper noted.

A spokesperson for Google, however, denied that an agreement was reached on the issue.

"The news item is unfounded and the agreement does not exist. We will continue collaborating with tax authorities," the spokesperson was quoted as saying by local media.

Milan chief prosecutor Edmondo Bruti Liberati said in a statement that "no agreements have been reached with Google so far." He added that an investigation was ongoing, at the end of which "final evaluations will be made." Endit