Google chairman hopes for France tax deal soon

Nov 05, 2012
Google chairman Eric Schmidt, pictured here in Paris in October 2012, 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 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.

"We had some good discussions, and I would expect that we will reach some kind of agreement by the end of the year," he told The in an interview.

did not immediately respond to an AFP inquiry on Schmidt's comments.

In the interview, the Google executive chairman appeared to maintain the company view that it does not owe a massive tax bill to France.

"Whenever you are dealing with government, you want to be very clear about what you will do and will not do," Schmidt was quoted as saying.

"And we don't want to pay for content that we do not host. We are very clear on that."

According to Paris-based news weekly Canard Enchaine, French tax authorities have made a billion-euro ($1.3 billion) claim against Google over financial transfers between Google's Irish and its French unit for four tax years.

Google France told AFP this week that it had received no such tax claim, and that it complies with tax laws in all the countries in which it operates.

According to , a Paris has rejected a request from Google to invalidate the search and seizure of documents by French tax authorities.

According to the court decision dated August 31, the French tax authorities believe that "the company Google Ireland Limited in practice carries out commercial activities in France using the human and material resources of the company Google France, without making the corresponding tax declarations."

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

Explore further: China criticizes Alibaba in report withheld until after IPO

add to favorites email to friend print save as pdf

Related Stories

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 ...

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.

Recommended for you

Nintendo's nine-month profit jumps on cheap yen

6 hours ago

Nintendo reported a nearly six-fold increase in profit for the first three quarters of the fiscal year Wednesday and raised its earnings forecast as a cheap yen masked weak sales.

SK Hynix Q4 profit doubles to record level

6 hours ago

South Korean chipmaker SK Hynix said Wednesday its profits more than doubled in the fourth quarter to a record high, thanks to the soaring popularity of new mobile devices such as Apple's iPhones.

After setting iPhone record, what does Apple do next?

7 hours ago

Apple CEO Tim Cook says consumer demand for new iPhones has been "staggering" and "hard to comprehend." That helped the company report record-smashing earnings for its latest quarter and primed its stock ...

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.