• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Italy wraps up probe into two Meta execs on alleged $938 million VAT evasion by Facebook owner

by December 9, 2024
written by December 9, 2024

By Emilio Parodi

MILAN (Reuters) – Italian prosecutors have wrapped up a probe into alleged tax evasion of 887.6 million euros ($937.93 million) by Facebook parent company Meta involving two executives of its Irish unit, the Milan prosecutor’s office said on Monday.

Closing the investigation is the formal step before prosecutors file any requests for trial, unless the suspects have first proven their innocence.

While it is a modest sum for a company that brought in more than $32 billion in revenue last year, the case could have much wider ramifications for the industry as it hinges on the way Meta provides access to services such as Facebook and Instagram.

Meta has said that it takes its tax obligations seriously, has paid all tax required in the countries where it operates and would fully cooperate with the Italian authorities.

ONGOING NEGOTIATIONS BETWEEN META AND TAX AGENCY

The Milan prosecutor’s office had been carrying out a criminal investigation into the two managers of the Irish-registered company Meta Platforms (NASDAQ:META) Ireland Ltd, a subsidiary of the U.S. group.

But the key issue that could affect the wider industry is being played out between Meta and Italy’s Revenue Agency, and it is still far from over.

Last year Italian tax police claimed that Meta user registrations could be seen as a taxable transaction as they implied the non-monetary exchange of a membership account in return for the user’s personal data.

In mid-November Italy’s Revenue Agency sent Meta a so-called “deed outline” (or “schema d’atto” in Italian), a list of its own observations, fully endorsing the conclusions of a Guardia di Finanza police investigation, two sources with knowledge of the matter told Reuters on Monday.

On this basis the Milan prosecutors and tax police allege that Meta would have failed to declare a taxable income of almost 4 billion euros from 2015 to 2021, corresponding to VAT evasion of more than 887 million euros.

The sources said Meta has 60 days to respond to the tax authority’s observations, after which it will either accept this approach and pay an agreed amount or initiate a full-fledged judicial tax dispute.

“We strongly disagree with the idea that providing access to online platforms to users should be charged with VAT,” a Meta spokesperson said on Monday.

Due to the sensitivity and unprecedented nature of the dispute, the Italian Revenue Agency, via the country’s Ministry of Finance, sent a request for a technical evaluation to the European Commission’s VAT Committee last December.

The requested opinion concerned the VAT treatment of online services provided by the social network in return for the provision of its users’ personal data.

According to the two sources, the agency has yet to receive a response from the Commission’s committee.

($1 = 0.9463 euros)

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Police questioning man found with gun about UnitedHealth exec killing, reports say
next post
Comcast, Warner Bros Discovery enter multi-year distribution deal

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 5, 2025
    • This California startup is cleaning water and removing CO₂ from the atmosphere — all at a reduced cost

      June 5, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (504)
    • Stock (6,426)

    Latest News

    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

    Popular News

    • Indonesia stocks higher at close of trade; IDX Composite Index up 0.21%
    • Saudi Arabia stocks lower at close of trade; Tadawul All Share down 0.91%

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy