The Gentiloni government, represented by the Economy Minister Pier Carlo Padoan, is committed to fighting tax evasion and making multinationals pay taxes. This was echoed by the director of the Italian Internal Revenue Service, Rossella Orlandi, who has indicated that the agreement signed Thursday with Google is the way forward for the other online major players (the best known names are Facebook and Amazon) that came under the spotlight of the judiciary for suspected tax evasion.
Under the agreement, Google will pay to the Treasury more than €300 million, although the figure certified by the Guardia di Finanza [Italian finance police] was much higher. The American company avoided paying Italian taxes for quite a long period, since the first surveys of the financial police date back to 2005.
This is the second case of multinationals settling with the government to avoid ending up in court. Apple made a similar agreement under the Renzi government. According to the Italian tax authorities, the companies were doing business in Italy but registered that revenue at their Irish subsidiaries, where most multinational companies benefit from a tax framework designed to attract investment.