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Tax: Google To Settle France With $1bn

  US internet giant Google has agreed a settlement totalling 945 million euros ($1.0 billion) to settle a tax dispute in France under an agreement … Continue reading Tax: Google To Settle France With $1bn


(FILES) A file photo taken on November 20, 2017 shows logos of US multinational technology company Google displayed on computers’ screens. Google is dropping out of the bidding for a huge Pentagon cloud computing contract that could be worth up to $10 billion, saying the deal would be inconsistent with its principles. The decision by Google, confirmed to AFP in an email October 9, 2018, leaves a handful of other tech giants including Amazon in the running for the Joint Enterprise Defense Infrastructure (JEDI) contract aimed at modernizing the military’s computing systems. LOIC VENANCE / AFP
(FILES) A file photo taken on November 20, 2017 shows logos of US multinational technology company Google displayed on computers’ screens.  LOIC VENANCE / AFP

 

US internet giant Google has agreed a settlement totalling 945 million euros ($1.0 billion) to settle a tax dispute in France under an agreement announced in court on Thursday.

The company will pay a 500-million-euro fine for tax evasion, as well as a further 465 million euros to settle claims with French tax authorities.

In a statement, Google confirmed the settlement and hailed the fact it had put an end to fiscal differences that it had had with France for numerous years.

French Justice Minister Nicole Belloubet and Budget Minister Gerald Darmanin welcomed the “definitive settling” of all the contentious issues, adding in a statement that the outcome was the result of two years of intense work by the French authorities.

“This outcome is good news for the public finances and fiscal fairness in France,” their statement said.

Belloubet said the settlement showed that the French authorities have the tools to ensure an equitable tax system.

“It is a historic settlement both for our public finances and because it marks the end of an era,” Darmanin said. “By normalising Google’s situation in France, (the settlement) responds to our citizens’ demands for fiscal fairness,” he said.

The settlement comes as France, as well as European allies, seek to find common ground with the United States in a long-running dispute over the taxation of digital giants.

French President Emmanuel Macron said alongside US President Donald Trump at the G7 summit in August that leaders had reached an agreement on the taxation of tech giants, though the precise details remain to be worked out.

AFP