Google is reportedly close to finalising a €280m settlement with Italian tax authorities for routing profits through Irish and Dutch subsidiaries to reduce its tax liabilities.

It would follow a similar settlement by Apple for €300m last year.

Facebook and Amazon are also under investigation in Italy for similar activities.

Italy has alleged Google improperly declared up to €800m in Italian income over a four-year period between 2009 and 2013, which dramatically reduced its tax liability in the country.

However, Google has denied it is close to settling its tax dispute with Italian authorities.

Earlier this week the Italian daily newspaper La Repubblica reported both sides were in the final stages of negotiations over an agreement