The investigation of Facebook comes less than 10 days after authorities said search engine Google may have underpaid its taxes by $123 million between 2002 and 2006. Google has denied any wrongdoing.
Tax police Friday took documents needed for an audit from Facebook's offices in Milan but there was no word how much Facebook might owe, Italy's ANSA news agency reported. Sources told ANSA that tax police were checking Facebook's accounting records.
Facebook's Italian operation said it was fully cooperating with the investigation and released a statement saying: "Facebook pays taxes in Italy as part of its activity in the country and takes its obligations in terms of Italian law very seriously."