(AP) France’s tax authorities have launched a 1 billion euro tax claim against Google, it was reported today. It follows financial inspectors searching the Paris offices of the internet giant in June 2011 as it investigated their accounting.
Google has reduced the amount of tax it pays in France by channelling its revenue through a Dutch-registered intermediary and then to a Bermuda-registered holding, Google Ireland Limited, before reporting it in low-tax Ireland.
Paying up: Google has been channelling its French revenue through a Dutch intermediary and then to a Bermuda-registered holding, before reporting it in Ireland, an investigation found
Socialist France is currently one of the highest taxed countries in the world, with the top rate of income tax standing at 75 per cent. According to court documents obtained by AFP, the French national news agency, Google France reported 192.9 million euros of revenue in 2012, and paid 6.5 million euros in tax on the 8.3 million euros of net profit it earned.
