Tag: Italy

Netflix under investigation for alleged tax evasion in Italy

Netflix under investigation for alleged tax evasion in Italy

Public prosecutors in Italy have opened a preliminary probe into the taxation of Netflix on the basis that servers and cables constitute a digital infrastructure that makes revenues taxable under Italian law. Italian media, Corriere della Sera, says that the prosecutors are working with Italy’s fiscal police to determine whether revenues from Netflix’s estimated 1.4 million Italian subscribers are subject to Italian taxation, even though Netflix operates out of the Netherlands. Italian prosecutors have recently also probed into the taxation of other U.S. tech giants such as Apple, Amazon and Facebook and collected a reported €5 billion-plus in back taxes. “Netflix does not pay taxes” the investigation in Milan starts. However, unlike the previous cases, Netflix have no companies, offices or employees in Italy. But still, Netflix earns millions selling streaming services to Italian customers. According to the prosecutor cables, fiber optics, computers, servers and algorithms have now replaced traditional factories and production facilities. Netflix has said that it is ... Continue to full case
Google paid 306 million Euro in an Italian tax settlement

Google paid 306 million Euro in an Italian tax settlement

Google has agreed to pay 306 million Euro to the Italian authorities in a transfer pricing dispute related to years 2009 – 2013. The dispute was one of several initiated due to the billions of dollars in sales to European consumers and Googles lack of tax payments in Europe. Google has already settled with the UK, paying 130 million in back taxes in 2016 to end an long lasting audit. Other disputes still remain elsewhere in Europe. The settlement follows an agreement reached in 2015, where Apple paid 300 million Euro to the Italian tax authorities. aggressive tax avoidance ... Continue to full case
Italy vs. Apple, December 2015, Settlement on Payment of 347 million Dollars in Back Taxes

Italy vs. Apple, December 2015, Settlement on Payment of 347 million Dollars in Back Taxes

Apple has agreed to paid an additional 347 million dollars to Italy in a settlement with the tax authorities. A spokesperson for the Italian tax office says that Apple is paying the sum to end the investigation, and that it is in line with what the agency had asked for — although substantially less than the €880 million Apple has been accused of withholding for sales booked in Italy. A similar agreement has later been entered into by Apple in the UK and Apple in France ... Continue to full case