Google Escapes €1.1 Billion Tax Lawsuit against French Tax Authorities
Google has received a favorable verdict from French court regarding retrospective tax slapped on the company by French tax authorities. The tax was slapped on technology major by French tax authorities for period between 2005 and 2010 for the business Google conducted in France. Google has been criticized by many European governments for escaping taxes in their region by getting tax incentives in Ireland.
Google Ireland operates majority of business in European countries and Google pays lower tax compared to the business it conducts in major European nations. Google has contested that the company pays taxes where they are due. The current verdict handed over by French court is important as Google faces tough times in many European countries regarding taxes. Google has recently agreed to a deal with Italian authorities with a lower tax rate. Italy received €272 million from Google earlier this year.
Last year in January, Google agreed to a deal with the UK tax authorities to pay nearly €160 million for the business the company conducted in the UK. The effective tax rate for Google in this deal comes at 3 percent. The deal with UK government was criticized by many politicians due to its low tax rate.
French authorities were determined to get higher taxes from Google as they weren’t interested in signing a special deal with the company. Other technology companies including Apple have been criticized for escaping taxes in European Union.
Google employs 700 people in France but advertising contracts for its search engine or video-sharing website YouTube are signed with its Irish subsidiary.
Offering relief to Google in this case, the French court ruled, “Google Ireland Limited is not taxable in France for the 2005 to 2010 period.”
European politicians will need to change the law regarding taxes in order to collect higher taxes from multinationals. Many companies are using the loopholes in the current tax system to escape paying taxes. As per the current laws, these companies aren’t doing anything wrong. Unless the law clearly defines some fine points about due taxes, companies and their accountants will figure out a way to escape taxes.
In response to detention of a German writer by Turkish authorities on Sunday, German Chancellor Angela Merkel accused Turkish authorities of misusing Interpol warrants.
In a highly ambitious move for China’s fast-growing domestic auto brands, Great Wall Motors is reportedly considering a plan to make a bid to acquire the Jeep unit of Fiat Chrysler.
Intel’s upcoming 8th-generation Core CPUs, which will feature quad-core processors inside of its chips, is expected to offer as much as 40 per cent faster performance than the previous generation.
Renowned auto giant Volkswagen (VW) recently confirmed that its microbus, a hippie favorite that was first launched in the 1950s, would be brought back onto public roads.
Technology and search major Google has officially enabled the eagerly-awaited Bluetooth audio streaming feature for Google Home, Android Police reported.
Internet search giant Google has confirmed that it has made a major update to its mobile search results pages to help users decide if a video brought up by the search engine is actually a video that they want to see.