In 2013, the company faced a UK parliamentary inquiry after an investigation showed the company employed hundreds of sales people in Britain despite saying it did not conduct sales in the country.
Google will adopt a new approach for U.K. taxes and the settlement covers taxes going back to 2005, the company said. Alphabet, which owns the Google search engine, has been criticized for paying a fraction of the taxes due on sales in the U.K. For example, the tech giant paid $16 million in U.K. corporation tax from 2006 to 2011 on $18 billion of revenue, according to a panel in 2013.
Separately, Apple is facing a European tax investigation that could force the iPhone maker to pay more than $8 billion in back taxes. European officials have accused the company of using subsidiaries in Ireland to avoid paying taxes on revenue generated abroad.