News

Google to pay $1 billion to France to settle tax-fraud probe

PARIS (Reuters) – Google has agreed to pay almost 1 billion euros ($1.10 billion) to the French authorities in order to settle a tax evasion probe, which began four years ago in a deal that will make it possible to create a legal precedent for other major tech companies in the country.

FILE PHOTO: Visitors of the logo on Google’s high-profile, high-tech start-ups and business leaders, the meeting, Tour-Tech,Paris, France-May 16, 2019 at the latest. REUTERS/Charles Platiau/File Photo

French investigators are on the look out in order to determine whether Google, whose European headquarters is based in Dublin, has failed to pay its dues to the state by avoiding the money, and a portion of its operations in the country.

The settlement includes a fine of eur 500 million and additional income of 465 million euros, ” Google said in a statement.

Google, as a part of the English Alphabet, Inc. (“GOOGL.(O) it pays very little tax, and the vast majority of European countries, report almost all of the sales in the republic of Ireland. This has been made possible thanks to a loophole in the international tax law, but it hinges on the staff in Dublin will close all the sales.

“It(the agreement) is to establish, once and for all past disputes,” said Antonin Levy, who was one of Google’s lawyers, during a hearing at the Paris commercial court.

The combined load is a fee that is less than the € 1.6 billion that the finance ministry was not willing to work with Google, after the company’s Paris offices were raided by 2016. At the time, the department was excluded from settlement by the company.

The Minister of the budget, by Gerald Darmanin, told the newspaper Le Figaro on Thursday that the system would lead to a legal precedent, and added that talks were under way with a number of other companies, both large and small. He has not indicated what their names are.

The european countries are struggling to make the tax on profits of multinational technology companies are derived in their jurisdiction.

France has pushed hard for a digital load is to cover by the member states of the European Union, but ran into resistance from the republic of Ireland, Denmark, Sweden, norway and Finland.

The French government has imposed its own unilateral tax, which the US President, when He is to wave the threat of violence that a tax on French wine.

“We continue to believe that a coordinated reform of the international tax system, which is the best way in order to provide a clear framework for companies that are active worldwide,” Google said.

Reporting by Simon Carraud, and Mathieu Rosemain; additional reporting by Leigh Thomas; Editing by Geert De Clercq

Follow us

Don't be shy, get in touch. We love meeting interesting people and making new friends.

Most popular