Yahoo Finance Google just paid $749 million to France
Tech giant Google has agreed to pay 465 million euros, or AU$749.12 million, in additional taxes to the French government in order to settle a fiscal fraud probe that has been running for four years.
This brings the total amount of tax paid to French authorities to nearly 1 billion euros, or A$1.6 billion.
French investigators sought to find whether Google – which has its European headquarters based in Dublin – side-stepped tax obligations by not declaring parts of its activities in the country.
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Google and tech giants like Apple don’t pay a lot of tax in most European countries, as they take advantage of a loophole that allows them to report nearly all sales in Ireland, where corporate tax paid by businesses is 12.5 per cent - almost half that of other European countries.
“We have put an end to the tax and related disputes we had had in France for many years," Google said in a statement.
“These agreements include a payment of 500 million euros announced today by a French court, as well as an amount of 465 million euros in additional taxes that we have agreed to pay.”
At a hearing in the Paris court, Google lawyer Antonin Levy said: “(The agreement allows) to settle once for all these past disputes.”
A legal precedent
Parisian newspaper Le Figaro reported that French budget minister Gerald Darmanin said the settlement would create a legal precedent, adding that talks were underway with other companies.
Europe has struggled to tax the profits of global tech companies derived in their country.
France has imposed its own unilateral tax, which saw US President Donald Trump threaten a retaliatory tax on French wine.
Google said: “We remain convinced that a co-ordinated reform of the international tax system is the best way to provide a clear framework for companies operating worldwide.”
–with wires
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