Pages Menu
Categories Menu

Posted by on Nov 2, 2012 in Economy |

Google France faces fine of U.S. $1.3 billion for tax noncompliance

Google France faces fine of U.S. $ 1.3 billion for tax noncompliance

(Cc) flickr dalbera

The French subsidiary of Google could be sentenced to pay $1.3 billion to the IRS (Department of Finance) by imcumplimientos in their tax obligations for the period 2011.

For several months the IRS investigates Google’s income in the Gallic country where strikingly, the U.S. company says only 138 million euros as of 2011 revenues, compared to other European countries where its subsidiaries have stated above billion euros, revenues for the past fiscal year.

Google denied the accusation and said that although the company, like many others, used tax optimization strategies, has always stated its under French tax law.

The news came through of an investigation led by the French weekly Le Canard Enchaine, a medium that has a prestigious history research. Hereby granted a letter the IRS sent to Google with conviction and obligation to pay tax penalties mentioned.

The main suspect of the average French is that Google would turn most of the income generated in France to its European headquarters in Ireland, where the corporate tax rate is 12.5%, the lowest in the European Community.

For this, crossed the revenue and profit numbers from France and Ireland, obtained in 2011 by the big G, and the results were as follows:

Revenue in France in 2011: €138 million
Revenue in Ireland in 2011: €12.4 billion
Gains in Ireland in 2011: €9 billion
Taxes in France in 2011: €5.5 million
Estimated tax for 2011 in France, according to the IRS: €150 million

Google has a few hundred employees in France, where only handles support areas and sales channels but attending to other European countries.

Under French law, from the local weekly research, contracts and bills payment irish customers who signed Google France are written in French, besides having a jurisdiction clause Gauls courts, which means for the law the country which “is a French contract”.

After this charge, a Google spokesperson contacted the French news agency AFP lkey report that “Google has not received a notice of tax adjustment French Tax Agency. We will continue to cooperate with the French authorities, as we have done so far. Google complies with the laws of the country in which the company operates, and with European legislation. “

This research looks like the beginning of a wave of fiscal intimations since France is not the only country in Europe where Google operates by offering products and services and billing in Ireland, suspicion is warranted in the incredible income you report on this country.

But not throw to Google at the stake. Apparently, it is not the only company operating in this way to “optimize their finances.” Both Apple and Amazon and Facebook have also been accused of tax noncompliance in France.

Link: Google France Faces Fine of $1.3 billion for tax noncompliance (TechCrunch)