Italy Demands Google To Pay Taxes Of IDR 17.5 Trillion

Google must pay a tax fine in Italy (photo: dock. google)

JAKARTA - The Italian government asked Google to pay an unpaid tax of 1 billion euros (IDR 17.5 trillion) along with a fine, according to three sources with direct knowledge of the matter on Friday, June 28. The fine was imposed seven years after the US company settled an important tax dispute with the authorities of Rome.

"We comply with tax regulations in all countries where we operate, including Italy," a Google spokesperson said in a statement in response to a question from Reuters about the claims. "We are working with the authorities."

The sources say that the Italian Tax Agent has started an adversarial process with Google that may end with the completion or opening of judicial litigation. The investigation was launched in December 2022, and this claim covers 2018 to 2022, said one source.

As in previous investigations, an investigation led by Milan prosecutors alleges that Google has not filed and paid taxes on the revenue generated in Italy, but this time the basis of the allegations is different.

In 2017, Google paid 306 million euros because it was considered to have a permanent stance in Italy based on its personnel operating in the country. Now, challenges have been put forward based on Google's digital infrastructure in the country that allows the company to operate and generate revenue. This approach is the same as the one used in Italy's recent tax settlement with Netflix.

Two of the sources said that if settlements were reached, this line of investigation would be applied to all multinational web companies under the supervision of prosecutor Milan.