Google and Italy nearing a tax deal
Google and Italy said to be nearing a tax dealGetty Images/Giuseppe Cacace

Google and Italy are nearing a deal to settle a tax dispute, according to the head of the Italian tax authority.

"We are very close to a solution with Google," Rossella Orlandi told Italian newspaper La Repubblica.

In January, Italy's tax authorities were looking for a deal from Google to pay between €270m (£228m) and €280m to settle the tax dispute, Reuters reports.

Italian tax authorities had accused Google of evading €227m in taxes between 2009 and 2013, which could attract hefty fines.

A Google spokesperson then said: "Google complies with the tax laws in every country where we operate. We are continuing to work with the relevant authorities."

The tax police believe Google failed to declare about €100m of revenues in Italy over the period of five years. The amount would have fallen into a 27% corporate tax bracket. Additionally, about €600m of royalties should have been revealed to the tax authorities and have faced a tax demand of about €200m.

Last year, Google agreed to pay £130m in back taxes to the British authorities. The opposition Labour Party and others claimed that the sum was too small compared with the profit the company made in the country.

Google recently said it would challenge tax assessments made by the Australian Taxation Office (ATO). In accounts filed with the Australian Securities and Investment Commissions, Google's Australian unit said it would "lodge an objection" to the tax demand from the ATO.

Meanwhile, Orlandi said Italy was also reviewing the business of internet platforms for home rental such as Airbnb.