(Adds Amazon statement)
MILAN, Dec 15 (Reuters) - Italy's tax authority said on Friday it had reached an agreement with e-commerce giant Amazon to settle outstanding tax claims covering the period 2011-2015.
Amazon will pay a total of 100 million euros ($118 million) to resolve the dispute, the tax agency said in a statement.
In April, Milan tax police said it believed the world's largest online retailer had evaded 120-130 million euros of taxes in Italy, a source told Reuters.
At the time Amazon said its profits in Italy, on which taxes are paid, had been low due to its considerable investments in the country.
The group confirmed in a statement on Friday it had reached an agreement with the authorities "on matters of the past", without giving details.
"In May 2015 ... we have created an Italian subsidiary which registers all revenues, expenses profits and owed taxed in Italy for its retail sales," it said.
It added the company had invested over 800 million euros since setting up in the country, in 2010, and employs over 3,000 people.
Amazon, and other multinational companies, have faced a crackdown by countries, particularly in Europe, trying to increase revenues from major corporations and close loopholes.
In October, Luxembourg said it would ask Amazon to set aside the 250 million euros that the European Commission has ordered the company to repay in taxes while the parties consider whether or not to appeal.
$1 = 0.8478 euros Reporting by Stephen Jewkes; Editing by Steve Scherer and Mark Potter