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France demands $1.76 billion back taxes from Google

by on25 February 2016


Unless it surrenders at the last minute

The French government has sent Google a bill for back taxes of 1.6 billion euros.

The move follows a half-hearted attempt by the British government to get a similar amount which was negotiated down to a pathetic $181.18 million.

Google’s tax optimisation techniques have made the European tax authorities look like idiots. While ordinary people pay a big chunk of their earnings to the authorities, Google was paying a few cents.

A finance ministry source has said that as far as France is concerned, back taxes concerning this company amount to 1.6 billion euros. Google is saying nothing but is trotting out the same line that the company obeyed tax rules in all countries where it operated.

French tax authority usually issues at least one preliminary assessment before its final assessment, which can be challenged in court if not accepted, tax advisers say.
Earlier this month, Finance Minister Michel Sapin ruled out striking a deal with Google, like the roast beef eating British government, saying the sums at stake in France were "far greater" than those in Britain.

France, Britain and other countries have long complained at the way Google, Yahoo! and other digital giants generate huge profits in their countries but have their tax base in countries such as Ireland, where corporate tax rates are far lower.

But the complaints have made little legal headway because EU tax law protects companies against paying tax in a country where they do not have what is termed a "permanent establishment".

Last modified on 25 February 2016
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