Italy, Google settle long-standing tax dispute with 306 mln euro settlement

The Italian government and U.S. Internet search giant Google on Thursday agreed to terms for a 306-million-euro (335 million U.S. dollars) tax settlement to end a standoff between the two sides that lasted more than a year.

The agreement erases all of Google's tax obligations for the period between 2002 and 2015, significantly longer than the 2009-2013 period announced when the probe was unveiled last year.

Google, which had denied owing any extra tax payments while negotiations were underway, released a short statement confirming the settlement. "In addition to the taxes already paid in Italy, Google will pay another 306 million euros," the company said.

Italy's tax collection agency released its own statement confirming the same figures.

The investigation alleged that Google improperly avoided tax obligations in Italy by recording profits in Ireland, where tax rates are far lower than the 24-percent corporate income tax rate in Italy.

The value of the Google settlement falls just short of the record 318-million-euro (346 million U.S. dollars) agreement Italian officials reached with Apple, Inc. in December 2015. Endit