Thumb

No deal for Google tax, French finance minister cautions after Paris raids

May 17, 2016 | 08 Comments | 26 Likes

France has no intents of pulling back on Google taxes, French finance minister Michel Sapin verified, after French tax authorities robbed the Parisian workplaces of the Silicon Valley search giant recently.

Sapin stated he didn’t do deals like Britain but would follow the letter of the law, taxing Google the optimum quantity owed. "We'll go all the method. There could be other cases," he told European reporters on Sunday.

French authorities are stated to be pursuing some 1.6 bn (1.2 bn) in corporation tax and VAT from Google, after the Californian company paid simply 5m of taxes in France on 225.4 m revenues in 2014.

The morning raid was part of a tax fraud investigation penetrating whether Google has been averting French corporation tax by transporting its revenues through its Irish headquarters and laundering the earnings. If found guilty, Google will deal with fines of up to 10m (7.60 m) or half of the value of the washed amount involved.

Analysis of data seized might take years, French monetary prosecutor ElianeHoulette told French media. "We need to analyze (the data) ... (it will take) months, I hope that it will not be a number of years, however we are really restricted in resources".

A Google spokesman said:" We adhere to the tax law in France, as in every other country where we run. We are working together completely with the authorities in Paris to answer their concerns, as constantly.

The probe, which was begun by tax authorities 3 or 4 years ago according to Sapin, comes simple months after Google paid 130m in back taxes to the UK federal government after a six-year HMRC examination. The Labor celebration criticized the agreement, calling it derisory and a sweetheart offer.

" There won't be negotiations," Sapin said, striking off the possibility of a similar tax deal with the enormous corporation. In February, Sapin stated that the sum Google will need to pay French tax authorities will be way bigger than its UK settlement.

This enhanced scrutiny comes amid enhancing European pressure on United States multinationals to pay more tax, consisting of a separate tax raid on McDonald's French headquarters on May 18. French media has reported that the fast food giant has been asked to pay 300m worth of overdue French taxes that were diverted through Luxembourg and Switzerland.

Late last year, iPhone gigantic Apple accepted pay a 318m back tax settlement to the Italian authorities and Google’s Paris office saw a similar tax raid back in 2011.

Google is presently weathering numerous regulatory obstacles in Europe, consisting of demands from the French government to use the so-called right to be forgotten internationally, instead of simply within the EU. Google has actually appealed the demand, and the associated 100,000 (75,000) great applied by French information regulatory authority CNIL. Its mobile software Android likewise deals with a competitor’s examination by the European Commission.