Like Apple and Google before it, Amazon has also decided to conclude an agreement with the Italian tax authorities on the contested matter of tax evasion. The giant headed by Jeff Bezos will pay €100 million into the coffers of the Italian treasury for the years 2011-2015. This is not yet the “web tax” that has been discussed for some time, but it is important to have established the principle that business carried out in Italy should be taxed in this country.
The tax settlement with the Italian Revenue Agency was signed to resolve any potential disputes relating to the tax investigations conducted by the Guardia di Finanza (Financial Guard) and coordinated by the head prosecutor of Milan in relation to tax payments due from the corporation between 2011 and 2015. In addition, the process has been started to conclude advance agreements for the taxation of the company in Italy.
The amounts pertain to both Amazon EU S.ar.l. and Amazon Italia Services s.r.l., two distinct legal entities that in this way have made their permanent establishment in Italy fully explicit. In their announcement of the advance arrangements for the future taxation of Amazon’s business in Italy, the Italian Revenue Agency stressed that it is “confirming its commitment to pursuing a policy of careful fiscal control regarding the operations of web-based multinationals in Italy.”