The French government and Google have reached a €945 billion settlement over tax fraud allegations, concluding investigations by authorities that have been ongoing for years.
A Paris court approved the penalty on Thursday of €500 million over charges of tax evasion, and an additional €465 million to settle claims with French tax authorities.
The ruling concludes investigations by the French authorities which have been ongoing since 2015. Tax investigators concluded that Google failed in its tax obligations by not declaring activity on French territory to the authorities.
Due to tax loopholes surrounding digital earnings, Google is able to declare most of its earnings in Ireland where corporation tax in 12.5%. This is usual practice for many multinationals which declare profits from activities across Europe in one country; governments, however, are beginning to clamp down this practice.
France has been leading the way in reexamining taxes on digital operations.
Via France 24
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