MILAN (AP) -- Google (NASDAQ:GOOGL) says it has been working with Italian authorities on an audit of the tax it pays in the country, after financial police determined the Internet giant had undeclared earnings of €240 million ($311 million) from 2002-2006

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.

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