French authorities probe Google's tax bill

Mar 20, 2012
Employees work in the Google France offices in Paris in 2011. French authorities are probing Google for potential tax avoidance, a source close to the matter said Tuesday, with the US Internet giant facing a possible bill of over 100 million euros ($132 million).

French authorities are probing Google for potential tax avoidance, a source close to the matter said Tuesday, with the US Internet giant facing a possible bill of over 100 million euros ($132 million).

"A process of adjustment is under way," the source told AFP.

The French budget ministry declined to comment, citing fiscal .

A spokesman for Google France said Google complies with the tax legislation of every country it operates in.

"We're convinced that we are in compliance with French laws," the spokesman said.

French news website lexpress.fr reported that tax and custom authorities searched Google France's offices in June.

Emails, receipts and contracts were seized during the search in order to determine how much business and sales tax the company had not paid between 2008 and 2010, the website said.

France is Google's fourth-biggest market in terms of activity, but the company had a declared turnover of only 68.7 million euros ($90.7 million) in 2010.

That amount is 37 times less than Google's turnover in the United Kingdom, which is 2.5 billion euros ($3.3 billion), lexpress.fr said. Google may have to pay more than 100 million euros ($132 million) in extra tax to French authorities, it added.

Many large US companies including Google base their operations in Ireland, where taxes are low. Paid French links on are billed to the company's European headquarters in Ireland.

French tax authorities' eventual decision could affect other US companies including , Amazon and Apple.

Amazon France declared a turnover of 21.7 million euros ($28.6 million) in 2010, while Amazon's overall turnover was 26 billion euros ($34.3 billion).

Amazon also pays no on MP3 music files downloaded from its French site, lexpress.fr said.

Explore further: Uber says outside review shows customer data safe, private

add to favorites email to friend print save as pdf

Related Stories

French publisher settles with Google

Aug 25, 2011

A French publisher who had battled in court to stop Google from publishing books online without permission said on Thursday it had come to terms and entered a partnership with the US-based Internet giant.

Recommended for you

Airbnb to expand tax collection efforts

Jan 30, 2015

Online lodging operator Airbnb is expanding its efforts to collect local taxes, responding to complaints that it competes unfairly with the hotel sector.

Jay Z to acquire Wimp music service

Jan 30, 2015

US rap star Jay Z will make a $56-million foray into the music streaming business by taking over the Norwegian service Wimp, its shareholders confirmed Friday.

How can Google snap its stock out of its stupor?

Jan 30, 2015

Google has turned into a stock market laggard as the shift to mobile devices has lowered the Internet search leader's digital ad prices and the company's expensive investments in far-out technology has trimmed ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.