Google issued a statement Thursday, the day after an Italian Treasury official announced the police findings. In addition, Vieri Ceriani said the company had not paid value added tax of €96 million in the period.
Italy joins France, Germany and Britain in scrutinizing Google's tax practices.
Google insists it complies with tax laws in countries where it operates and that audits are common. It added that Italian authorities to date have not demanded additional tax.
Google's European operations are based in Ireland, where the company contracts out its services and pays corporation tax.