Google (GOOGL.US) has reached a settlement with Italian prosecutors regarding a tax dispute, agreeing to pay $340 million.

Italian prosecutors announced on Wednesday that they planned to drop their case against Google's European division after the company agreed to pay 326 million euros ($3.4 billion) to settle tax claims. The agreement covered sanctions, fines, and interest from 2015 to 2019, according to a statement from the prosecutors. Milan prosecutors had accused Google of failing to declare and pay taxes on income generated in Italy, citing the company's digital infrastructure in the country.

It is noteworthy that Italy's government and Google had reached a settlement over tax disputes in 2015. At the time, Google agreed to pay 306 million euros to settle the dispute, which had lasted for more than a year. The agreement cleared all tax obligations for Google from 2002 to 2015. Earlier reports cited an investigation that showed Google had registered its profits in Ireland to avoid paying taxes, which was far lower than Italy's 24% corporate tax rate.