Google Reportedly Facing $1.3 Billion Tax Bill In France

Chris CrumBusiness

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In addition to publisher-related issues Google is facing in France, it is also having some tax related issues. Tax related issues that could amount to about $1.3 billion.

Direction générale des finances (essentially the French IRS) may order Google France to pay as much related to "noncompliance" last year. TechCrunch reports:

The French weekly Le Canard enchaîné (which has an excellent track record for investigations) first obtained a letter that the Direction générale des finances sent to Google France asking it to pay $1.3 billion (€1 billion) in tax penalties. Most of Google France’s revenue could go directly to Google’s European headquarters in Ireland where the corporate tax is only 12.5 percent.

Blooomberg BusinessWeek reported:

Google France denied being notified of such a tax bill and said it will "continue to cooperate with the French authorities." Government spokeswoman Najat Vallaud-Belkacem wouldn't comment on the report in the weekly Canard Enchaine, except to say that if there were a tax probe, it would be covered by laws on fiscal secrecy.

Add all of this to the antitrust-related issues Google still faces in Europe, and the company has its hands quite full on the continent.

Chris Crum

Chris Crum has been a part of the WebProNews team and the iEntry Network of B2B Publications since 2003. Follow Chris on Twitter, on StumbleUpon, on Pinterest and/or on Google: +Chris Crum.