Prosecutors in Milan plan to drop a case against Google's European division after the US technology company agreed to pay 326 million euros ($340 million) to settle a tax dispute.
The agreement covers the period from 2015 to 2019 and includes fines, sanctions and interest, the prosecutor's office said in a statement.
Italy last year asked Google to pay a billion euros in unpaid taxes and fines, seven years after the company had already settled a previous major tax dispute with the authorities in Rome, Capital.ba reports.
Prosecutors in Milan alleged that Google failed to declare or pay taxes on income earned in Italy, citing the company's digital infrastructure in the country. The investigation focused on advertising revenue, and the presence of servers in Italy was cited as the basis for the claims.
This is not the first time Google has settled tax obligations in Italy. In 2017, the company paid 306 million euros to settle a previous case, in which it was found to have a permanent business presence in Italy.
The US tech giant previously paid more than $1 billion to French authorities to settle a years-long dispute over tax fraud allegations. Google has not yet responded to requests for comment on the suspension of the Italian court case.
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