ItalyThe Guardia Di Finanza Financial Police has opened a tax investigation in Elon MuskThe X Social Network is in a step that can have a broader impact on the dispensing of the continuous regulatory battle between the European Union and the American technology giants including Google, Apple and Meta.
The Italian investigation of X, which was first informed by Reuters, follows a parallel investigation by the Italian authorities to Meta. It specifically includes a non-payment of 12.5 million euros (13 million dollars) at VAT for years 2016-2022. Musk completed its seizure on the platform that was previously known in October 2022.
Although the amount, and a potentially relevant fine, are small for the tyrant that achieved $ 3.4 billion in 2023, the Italian investigation is important because it may put an important legal precedent within the European Union at a sensitive time.
US President Donald Trump recently threatened to impose a tariff on imports from countries such as Italy, which receives digital service taxes on American technology companies.
The Italian investigation at X and Meta focuses mainly on the principle that was presented by the tax authorities in Italy that when social networks provide services, customers provide their data, albeit free, to these platforms. Consequently, platforms, in turn, must pay the value -added tax as they earn money from this information, and the Italian tax authorities claim.
The financial police in Italy gave several weeks to respond to their demands. When this time ends, X can pay, thus accepting the principle, or the dispute over the claim in an Italian court.
X did not immediately respond to a request for comment from diverse.
If a legal precedent is appointed in Italy, the social media company must pay a tax on its customers, although it provides a free service, this principle can be extended through the 27 -country European Union, which contains the unified value -added tax tax system.
Italian tax authorities are at the forefront of the European Union’s efforts to follow up on large technology companies on tax payments. Google last week agreed to pay 326 million euros ($ 341 million) of taxes, fines and benefits to not pay taxes on the income generated in Italy between 2015 and 2019, specifically on the revenues resulting from the sale of the advertising space.
However, the country’s Prime Minister Georgia Meloni has developed a close relationship with Tech Titan. According to the Italian government, the Italian government is currently studying to address the Musk’s Starlink connections, part of the Musk Spacex Aerospace, which is exploded by opposition politicians.
