Italian tax police probe Google Italy again

ROME Wed Nov 28, 2012 12:00pm EST

ROME Nov 28 (Reuters) - Italian police launched a new tax probe into Google Italy after earlier investigations found the internet company had failed to declare income and still owed sales tax, an economy ministry document showed on Wednesday.

The earlier probe, which was launched by Italian financial police in 2007 and examined the years 2002-2006, found that Google had developed a system to transfer profits from its Italian operations to Ireland so it could benefit from a more favourable tax regime.

The earlier probe found that Google had failed to declare at least 240 million euros of income to authorities and owed more than 96 million euros in sales tax, according to the ministry's response to questions in parliament.

Google said in a statement that it complies with tax law in every country in which it operates.

"We are confident we comply with Italian law," a spokeswoman said, adding the firm would cooperate with Italian authorities and answer any questions for the investigation.

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