France says Google would lose court case over taxes

Nov 20, 2012
French Junior Minister for Budget, Jerome Cahuzac speaks during a press conference on tax evasion in Paris. Cahuzac said Google would never win a court case contesting a huge tax bill claimed by French authorities.

France's Budget Minister Jerome Cahuzac said on Tuesday Google would never win a court case contesting a huge tax bill claimed by French authorities.

Cahuzac said he had "the most genuine conviction" that the courts would back France's claim against Google over unpaid taxes.

Speaking to reporters in Nanterre near Paris, he said French authorities were in talks with Google and had provided the with an estimate of the amount owed.

Paris-based news weekly Le Canard Enchaine reported in its edition due to appear Wednesday that the tax bill stood at 1.7 billion euros ($2.17 billion), up from a previous estimate of a billion euros.

Google reduces the amount of tax it pays in France by funnelling most revenue through a Dutch-registered intermediary and then to a Bermuda-registered holding, Google Ireland Limited, before reporting it in low-tax Ireland.

France has also demanded $252 million in back taxes from online retailer Amazon, which uses a similar structure involving a Luxembourg-based holding company to reduce its exposure to French corporate tax.

Google is also under pressure for alleged in Britain, where officials have said it paid only £3.4 million ($5.4 million, 4.2 million euros) in British corporate tax last year on revenues totalling about £2.5 billion.

In an interview with the earlier this month, chairman said he hoped the firm would reach a settlement by the end of the year with authorities in France.

Explore further: TCS, Mitsubishi to create new Japan IT services firm

add to favorites email to friend print save as pdf

Related Stories

Google chairman hopes for France tax deal soon

Nov 05, 2012

Google chairman Eric Schmidt said Monday he hopes his firm will reach a settlement "by the end of the year" with authorities in France in a billion-dollar dispute over taxes.

Google loses appeal against French tax searches

Nov 02, 2012

A Paris appeals court has rejected a request by Internet search giant Google to invalidate the search and seizure of documents by French tax authorities, according to a copy of the decision obtained by AFP ...

Google 'open to mediation' in France revenue row

Nov 06, 2012

Google said on Tuesday it was open to the idea of appointing a mediator to help end its bitter row with French news media sites that want to make the US Internet giant pay to display links to their content.

French authorities probe Google's tax bill

Mar 20, 2012

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).

France eyes 'Google Tax' for French websites

Oct 29, 2012

(AP)—French President Francois Hollande is considering a pushing for a new tax that would see search engines such as Google have to pay each time they use content from French media.

Amazon gets $252 mn tax bill from France

Nov 13, 2012

France has demanded $252 million in back taxes from Amazon, it emerged on Tuesday, increasing the pressure on the online retailer over its controversial corporate structure in Europe.

Recommended for you

TCS, Mitsubishi to create new Japan IT services firm

54 minutes ago

India's biggest outsourcing firm Tata Consultancy Services (TCS) and Japan's Mitsubishi Corp said Monday they are teaming up to create a Japanese software services provider with annual revenues of $600 million.

Chinese tech giant Alibaba set to make a splash with US IPO

16 hours ago

The largest tech IPO of the year will come from a company that many Americans have never heard of. Alibaba Group - a Chinese e-commerce behemoth - has decided to go public in the U.S. after months of speculation that it would ...

Ex-Apple chief plans mobile phone for India

Apr 19, 2014

Former Apple chief executive John Sculley, whose marketing skills helped bring the personal computer to desktops worldwide, says he plans to launch a mobile phone in India to exploit its still largely untapped ...

Airbnb rental site raises $450 mn

Apr 19, 2014

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

grondilu
1 / 5 (1) Nov 20, 2012
I'm french and I wonder if Google is not much more usefull to me than the french government/state is.

More news stories

TCS, Mitsubishi to create new Japan IT services firm

India's biggest outsourcing firm Tata Consultancy Services (TCS) and Japan's Mitsubishi Corp said Monday they are teaming up to create a Japanese software services provider with annual revenues of $600 million.

Finnish inventor rethinks design of the axe

(Phys.org) —Finnish inventor Heikki Kärnä is the man behind the Vipukirves Leveraxe, which is a precision tool for splitting firewood. He designed the tool to make the job easier and more efficient, with ...

Atom probe assisted dating of oldest piece of earth

(Phys.org) —It's a scientific axiom: big claims require extra-solid evidence. So there were skeptics in 2001 when University of Wisconsin-Madison geoscience professor John Valley dated an ancient crystal ...