Google Pays IDR 5.5 Trillion To Resolve Tax Cases In Italy

Google is accused of not reporting and paying taxes on revenue generated in Italy (photo: dock. google)

JAKARTA Prosecutor Milan plans to stop the case filed against Google's European division after the tech giant agreed to pay 326 million euros (IDR 5.5 trillion) to resolve the tax dispute.

In a statement released on Wednesday, February 19, the prosecutor explained that the agreement covers a period between 2015 and 2019, including sanctions, fines, and interest.

Last year, Reuters reported that Italy asked Google to pay 1 billion euros (IDR 17 trillion) in taxes and fines that had not been paid. This request comes seven years after Google settled a major tax dispute with Italian tax authorities in 2017 by paying 306 million euros (IDR 5.2 trillion).

Prosecutors in Milan accused Google of not reporting and paying taxes on the revenue generated in Italy. This claim is based on the company's digital infrastructure in the country, which is considered to provide permanent existence for Google in Italy.

With this latest settlement, Google has again avoided the potential for a longer and more complicated legal process in Italy.