Amazon to pay Italy 118M over tax probe

Amazon.com Inc. will pay 100 million euros (US$118 million) to the Italian tax authorities for the period of 2011-15 in a settlement that closes the fiscal probe by the country’s tax police, Italy’s Revenue Agency said in an emailed statement Friday.

Amazon confirmed in a separate statement that it reached an agreement and its local branch now has all revenues, expenses and taxes accounted for in Italy. It did not disclose the amount it would pay.

The Seattle-based internet retailer said it set up an Italian branch in May 2015 “with all retail revenues, expenses, profits and taxes due now accounted for in Italy.” It further said it had invested more than 800 million euros in Italy and created 3,000 jobs since 2010.

The settlement comes three days after Facebook Inc. announced it will start paying taxes in the country where sales are made. An Italian Treasury spokesman said the same day the announcement amounted “to an important change that is a step in the right direction.”

The change may bring Italy about 100 million euros of additional tax revenue per year, Il Messaggero reported Wednesday.

The Italian government has made combating tax evasion one of its priorities for the last few years, probing a number of high profile international companies. Google in May agreed to pay an additional 306 million euros to settle tax inquiry related to the 2002-15 period.

Kering’s Gucci is also cooperating with Italian tax police on investigation of its operations in the country, the company said in a statement in December. Bloomberg and The Associated Press