Google dodges $1.6bn tax bill in France

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Google dodges $1.6bn tax bill in France

Wins legal challenge.

A French court has ruled Google was not liable to pay €1.1 billion (A$1.6 billion) in back taxes demanded by the French authorities.

The Paris administrative court ruled that Google Ireland Limited was not subject to corporate and value-added taxes for the period 2005-2010, striking down the tax administration's demands for back payments.

The ruling in favour of Google, now part of Alphabet, followed a court adviser's recommendation that Google did not have a "permanent establishment" or sufficient taxable presence to justify the bill.

In a statement, the French finance ministry said it was considering an appeal, which must be lodged within two months.

 

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