Google Denies Reaching Tax Agreement In Italy

An article published early Wednesday in the Italian newspaper Corriere Della Sera reported that Google Inc GOOG  GOOGL had agreed to pay Italy approximately 320 million euros in back taxes. The alleged debt corresponds to taxable income of 800 million euros generated in Italy between 2008 and 2013.

Google had supposedly made money on advertising sales in Italy, but paid its taxes in countries that offered “privileged fiscal conditions,” like Bermuda and Ireland.

Italian prosecutors said that no agreements had been reached. However, they did confirm an ongoing investigation. For Google’s part, a company spokesman told ANSA (the Italian National Agency of Associated Press) that “the news item is unfounded and the agreement does not exist.” The spokesman, also added that the company will “continue cooperating with tax authorities.”

Shares of Google were recently up about 1.8 percent on Wednesday morning.