Alex Omenye
The initial examination of Facebook parent firm Meta in a tax lawsuit, which might result in a bill for the American business of about 870 million euros ($925 million) and serve as a test case for the digital industry, is anticipated to take Italy until the end of the year.
Although a small amount for a business that generated more than $32 billion in revenue last year, the case may have much more significant effects for the sector as it depends on Meta’s ability to access platforms like Facebook and Instagram.
The dispute arose from an Italian audit that alleged Meta user registrations would be considered taxable transactions since they indicated a non-cash exchange of a membership account for the user’s personal information.
The European Public Prosecutor’s Office forwarded the audit, which was designed and carried out by the Guardia di Finanza police in Italy, and Milan magistrates started a criminal probe earlier this year.
According to Meta, it pays all taxes owed in the nations where it conducts business, takes its tax obligations seriously, and will fully cooperate with Italian authorities.
According to a forecast developed by Italy’s tax police and revenue agency, Meta would have been required to pay the nation’s sales tax in the region of 220 million euros in 2021.
870 million euros were determined to be the total for the time frame prior to 2015.
