France demands 1.6 bn euros in tax from Google: sources

February 24, 2016
France has demanded 1.6 bn euros in tax from Google, a source tells AFP
France has demanded 1.6 bn euros in tax from Google, a source tells AFP

French authorities have demanded that US Internet giant Google pay 1.6 billion euros ($1.7 billion) in back taxes, a source close to the matter said Wednesday.

"In regards to France, a 1.6 billion euro adjustment has been imposed on the company," the source said. The French finance ministry told AFP the amount Google would have to pay was subject to "fiscal confidentiality".

Google is one of several multi-national corporations that have come under fire in Europe for paying extremely low taxes by shifting revenue across borders in an often complex web of financial arrangements.

France refused to negotiate the amount of back taxes it would request, unlike Britain which requested £130 million ($185 million, 170 million euros) from Google, prompting criticism from parliament that the figure was "disproportionately small".

Italy is also demanding Google over 200 million euros in back taxes following an inquiry by the financial police.

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