Google settles Italian tax dispute with $334 million payment

Following a settlement with Russia last month over Android pre-install restrictions, Google has agreed (via Reuters) to pay Italy €306 million in unpaid taxes from 2002 through 2015.

Italian authorities alleged last year that the company avoided paying taxes on €1 billion worth of country-specific revenue during a four-year period beginning in 2009.

However, the announced settlement today covers a much longer period starting from 2002 and only ending in 2015. The payment is also “referenced to both Google Italy and Google Ireland units.”

Google and other American companies in Europe are often accused of using tricks to avoid paying higher taxes by funneling income through lower tax countries like Ireland.

For its part, Google says it complies with all local laws and that it already paid taxes in Italy for those years.

Meanwhile, Italian authorities note they will be more vigilant with Google in the future:

“With Google a process will be kicked off to come up with preventive agreements for correct taxation in Italy in the future for operations that regard our country.”