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Google Paris Offices Raided in £1.2 Billion Tax Probe

FirstArmada
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French authorities raided Google’s Paris headquarters early morning early morning on Tuesday, with representatives from France’s financial prosecutors office, combined with the country’s office against financial corruption and fraud on 5am. The US search engine giant is being accused of evading French taxes; with similar claims also having surfaced against the company in the past as well.

Google’s headquarters in France operate as a subsidiary of Google Ireland Ltd.with the French looking to establish its permanent presence in the country. The search engine giant’s primary European headquarters are based in Dublin, which with its

12.5% tax rate helps Google save quite a bit in taxes.

Google claims that its offices in countries including France, Britain and more merely serve as subsidiaries of Google Ireland Ltd. and do not perform permanent revenue based operations in the respective territories. The company’s headquarters in France employ more than 700 in staff and paid €5m in taxes two years back.

 

Dang , another one bites the dust i wonder if the Panama leaks could have something to do with this , google could have been named in a part of the leaks that haven't been disclosed to the public .

 

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Investigators from the financial prosecutors office and France's central office against corruption and tax fraud, accompanied by 25 IT specialists, took part in the raid.

"The investigation aims to verify whether Google Ireland Ltd has a permanent base in France and if, by not declaring parts of its activities carried out in France, it failed its fiscal obligations, including on corporate tax and value added tax," the prosecutor's office said in statement.

 

Google, now part of Alphabet Inc, pays little tax in most European countries because it reports almost all sales in Ireland. This is possible thanks to a loophole in international tax law but it hinges on staff in Dublin concluding all sales contracts.

 

If staff in countries like France finalize contracts with local clients, then the company would be obliged to report the revenues nationally and pay taxes in each country.

Al Verney, a spokesman for Google in Europe, said in an email: "We are cooperating with the authorities to answer their questions. We comply fully with French law."

 

Alphabet Executive Chairman Eric Schmidt, approached for a reaction at a conference in Amsterdam, declined to comment.

 

 

Source : Reuters & Bloomberg

 

Quote from : Wccf Tech and Reuters 

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As much as I love Googles products and services, fuck them for not paying taxes in the country the money is generated. I have to pay tax on everything I earn, I don't have the option filter my salary through some shady loophole. 

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I dont get whats so difficult about paying taxes.  We all pay them.  If you have a good accountant, you can probably find ways to save on it, but to evade it to save millions is another issue.  

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25 minutes ago, FirstArmada said:

Dang , another one bites the dust i wonder if the Panama leaks could have something to do with this , google could have been named in a part of the leaks that haven't been disclosed to the public . 

I highly doubt it.

This is not the first case of a tech giant doing some tax evasion thing. Apple does it as well for that matter. 

The ability to google properly is a skill of its own. 

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40 minutes ago, never_here said:

I dont get whats so difficult about paying taxes.  We all pay them.  If you have a good accountant, you can probably find ways to save on it, but to evade it to save millions is another issue.  

Who is "we". You think rich people pay taxes. 

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Just keeping this here as a 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Instead of burning Google at the stake, let's see how this turns out.

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My camera lens sees the present…

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11 hours ago, Rammix said:

As much as I love Googles products and services, fuck them for not paying taxes in the country the money is generated. I have to pay tax on everything I earn, I don't have the option filter my salary through some shady loophole. 

this is almost all companies lol. Not just Google. But the EU has it out on Google and wants to take them down.

Judge a product on its own merits AND the company that made it.

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3 minutes ago, AluminiumTech said:

this is almost all companies lol. Not just Google. But the EU has it out on Google and wants to take them down.

Yes you're right it is not just Google, Starbucks, Amazon, Apple to list just a few. By taking a stand against Google,  the French authorities is sending a message to all multinational companies operating in the EU. Here in the UK our government let Google off its massive tax bill and accepted a very small percentage of what was owed. Funnily enough shortly afterwards our Chancellor of the exchequer was flowen out to watch the super bowl as a guest of... You guessed it.. Google  

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