Google escapes 1.1b euro tax bill in France

Google is not responsible for 1.115 billion euros (1.272 billion US dollars) in unpaid taxes claimed by the French state, a French court said on Wednesday, claiming that the Irish subsidiary Of the Internet giant is not taxable in France


"The French company Google Ireland Limited (GIL) is not taxable in France for the period 2005 to 2010," the court said.

Google paid only 6.7 million euros of corporate taxes in 2015 in France by making reservation earnings for its online empire in its European subsidiary in Ireland at low rate 39, a legal loophole appreciated by multinationals.

The group employs 700 people in France, but advertising contracts for its search engine or the YouTube video sharing site are signed with its Irish subsidiary.

The French claim was the latest in a series against the California – based group, which faces growing legal problems in the EU.

European action has become increasingly aggressive against US technology giants Amazon, Facebook and Apple as well as Google.

The EU hit Google with a record fine of 2.4 billion euros on 27 June for abusing its dominant position in the search engines sector and illegally promoting its own shopping service On its competitors.

In 2016 European chief of competition Margrethe Vestager shocked Washington and the world by ordering Apple iPhone maker to repay 13 billion euros in taxes back to Ireland after paying a rate Taxation almost zero years.

The newly elected French President, Emmanuel Macron, has vowed to fight on US Internet giants during his campaign, seeing his low tax rates as a source of resentment to the world. Globalization and unfair to European companies. The government's public accounts department later said Wednesday that it was weighing an appeal.

"The administration has two months to appeal these decisions and is already working for this purpose," he said in a statement.

Economy Minister Bruno Le Maire said on Sunday: "It is time for Europe to take hold and defend its interests, making Google, Amazon and Facebook pay taxes That they owe to European taxpayers "


The French application was significantly higher than the amount Google agreed to pay the Italian and British tax authorities on its tax arrangements with its Irish subsidiary.

In May, the group agreed to pay 306 million euros to the Italian authorities. Last year, he struck an agreement with Britain to pay £ 130 million (€ 170 million) for a decade of activity, which has been criticized for the " Era by opposition MPs as being too low.

The French claim was a fraction of the company's annual profits: in April, Alphabet, Google's parent company, reported a 29 percent profit jump to $ 5.4 billion in the first quarter of 2017.

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