Italy is poised to secure a tax back payment from Google equivalent to 15 per cent of its revenues in the country as it gets tough with the internet giant.

A deal is expected to be struck soon between Italy’s Treasury and the US technology firm, with Google said to be preparing to hand over €150million (£113million) to the country’s authorities.

Prosecutors in Milan have led the probe into the company, which in 2014 declared a turnover in the country of €54.4million (£41.2million) and some €1.8million (£1.4million) in profit.

Google in Milan: A deal is expected to be struck soon between Italy’s Treasury and the US technology firm, with Google said to be preparing to hand over €150million (£113million) to the country’s authorities

And the new deal would be equivalent to 15 per cent of Google’s €1billion (£760million) revenues in Italy - although it is not yet clear how many years the dispute relates to, according to The Times.

The Italian Treasury recently struck a £240million tax deal with Apple, another US technology giant that has been criticised for its tax arrangements around the world.

Prosecutors, supported by the Guardia di Finanza tax police who are in charge of combating tax avoidance, have been probing Google over allegations profits generated out of its highly lucrative advertising business were registered in Ireland and Bermuda.

Google employs some 130 staff members in Italy, including at its main base in Milan. Reaching a compromise has so far been a hard task, constantly delayed.

As part of a crackdown on the undeclared profits of internet giants operating in Italy, the government of Prime Minister Matteo Renzi announced plans to introduce a so-called ‘web tax’.

Other companies currently under scrutiny of the authorities include Amazon and Western Digital.

Paris office: Google’s French operation is facing demands to pay almost three times as much tax as the ‘trivial’ amount clawed back by HMRC – despite being a quarter the size of its UK arm

Francesco Boccia, the Democrat deputy who is sponsoring the ‘web tax’, said it was ‘about time internet giants start paying all their taxes and … understand that their profits are made in Italy’.

Google’s French operation is facing demands to pay almost three times as much tax as the ‘trivial’ amount clawed back by HMRC – despite being a quarter the size of its UK arm.

About time internet giants start paying all their taxes and … understand that their profits are made in Italy Francesco Boccia, Democrat deputy sponsoring the 'web tax'

French officials are reported to be aggressively pursuing the company for £378million – compared with the £130million to be paid to the British tax authorities over ten years.

This is despite Google’s UK arm employing four times as many staff and generating about three times as much revenue.

While Google paid £2.3billion in tax around the world in 2014 it is estimated its UK arm paid only £46.2million in the 18 months to the end of June 2015.

A Downing Street spokesman said George Osborne was aware of ‘speculation’ France is seeking a large sum but added ‘it does remain to be seen how much they get’.