Since 2015, the French justice is investigating the US Internet group. It involves allegations of massive tax evasion. Now, Google relented and agreed to a settlement.
To avoid further legal disputes, accepted Google in France, a penalty payment of EUR 500 million. In addition, the US will pay companies 465 million euros in taxes. That provides for an agreement with the government in Paris, such as the Internet, the group said. Similar arrangements had been taken by Google already, with the UK and Italy.
The government of President Emmanuel Macron spoke of a “historic” agreement and good news for the state finances. Budget Minister Gérald Darmanin can use every Euro. This year, France is likely to violate the EU deficit limit of three percent in the coming year Paris will adhere to the rules.
Profits are small expected
France has accused Google in the past years, to calculate its profits in the country is small. The US group has approximately 700 employees and paid taxes for the year 2015, but only 6.7 million euros. The sale of ads for the French market at Google or the subsidiary YouTube is handled by Google Ireland Limited. In Ireland with its low tax rate, Google has established in Europe.
European countries accuse Google and other major U.S. Internet companies such as Amazon or Facebook again and again, tax avoidance practices. Thus, it is to be added held corporations, complex financial flows of their profits in countries with higher taxes – such as France – artificially small. The affected companies assert, however, that it was legal methods of tax optimization. The Google mother’s Alphabet paid in the past year, however, in the world of tax and penalties in the EU. The British magazine Computing, calculated on the basis of the annual report in 2018.
In the future such Triksereien advance, at least partly, in a bar, has brought the French government, despite massive threats from US President Donald Trump – in July, a controversial digital tax law on the way. Accordingly, all companies with worldwide more than 750 million euros in sales and in France, need to control more than 25 million in the future three percent on your online generated ad-revenue numbers. Are affected, among others, Google, Apple, Facebook and Amazon. The French Treasury expects to have revenues of 500 million euros per year.
se/rb (afp, rtr, ap, dpa)