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Thread: Google facing $1.3bn fine in France for Tax Noncompliance .. Ireland in middle of it

  1. #1
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    Default Google facing $1.3bn fine in France for Tax Noncompliance .. Ireland in middle of it

    Google France Faces Fine Of $1.3 Billion For Tax Noncompliance. Google Denies The Accusation. | TechCrunch

    Google France could be ordered to pay $1.3 billion to France’s equivalent of the IRS (Direction générale des finances) due to tax noncompliance in 2011. The agency has been investigating Google’s revenue in France for months. With only 138 million euros of revenue in France in 2011, the company has used tax-optimization strategies, but has always stated that they comply with the law. It denies the accusation.

    Most of Google France’s revenue could go directly to Google’s European headquarters in Ireland where the corporate tax is only 12.5 percent.

    French news website Owni obtained Google Ireland’s 125-page financial statements for 2011, certified by Ernst & Young, in order to corroborate Le Canard enchaîné’s investigation.

    Here are the important numbers:

    -Revenue in France in 2011: €138 million
    -Revenue in Ireland in 2011: €12.4 billion
    -Profit in Ireland in 2011: €9 billion
    -Tax in France in 2011: €5.5 million
    -Estimated tax in France for 2011 according to the DGF: €150 million
    Once again, the problem isn’t that most of the revenue is going to Ireland. It is that French contracts are recorded and taxed by Irish authorities.
    But France isn’t the only European country in which Google only reports a fraction of their revenue. Supposedly, Google operates in many European countries and proceeds exactly the same way. It’s the only way to justify the incredible revenue in Ireland.
    So is the game up? Is our distinct "advantage" about to get eroded via cases like this?
    Last edited by robut; 2nd November 2012 at 02:58 AM.

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    Politics.ie Member odlum's Avatar
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    Another story from Europe on Ireland's corporation tax. These things come up monthly and have done for 20 years.

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    I will take absolutly no pleasure in witnessing what is going to happen to France,

    It's a country that I have a great affection for,

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    Politics.ie Member forest's Avatar
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    I love all these stories you hear mainly from France, Germany, UK about big companies avoiding tax
    The always blame Ireland
    You never hear mention of it here
    "We know what to do, we just dont know how to get elected afterwards" Jean-Claude Juncker on how to fix the European economy

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    Politics.ie Member stopdoingstuff's Avatar
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    Of course it would never occur to the French that they can lower their taxes too and get 12.5% of a big figure rather than a bazillion % of nothing.

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    Politics.ie Member Analyzer's Avatar
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    Just wondering....any chance that the French tax authorities might take an interest in the Bonox and the Malteser ???
    Coveney's ambition is the be Ireland's next EU Commissar and Ireland will pay a price as he builds his CV to position himself sufficiently loyal to the nEU empire.

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    Politics.ie Member Sync's Avatar
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    Quote Originally Posted by forest View Post
    I love all these stories you hear mainly from France, Germany, UK about big companies avoiding tax
    The always blame Ireland
    You never hear mention of it here
    I think you'll find they're blaming google.
    I'm living in America, and in America, you're on your own. America's not a country. It's just a business. Now f***ing pay me.

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    Since when are companies taxed on revenue, as opposed to profits?
    (Though an EU USC type tax on revenue in corporations would benefit the internal market and if third world countries followed suit, the €23tr untaxed money sloshing around the world might benefit citizens rather than shareholders).

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    Politics.ie Member Clanrickard's Avatar
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    Quote Originally Posted by robut View Post
    Google France Faces Fine Of $1.3 Billion For Tax Noncompliance. Google Denies The Accusation. | TechCrunch
    So is the game up? Is our distinct "advantage" about to get eroded via cases like this?
    Misleading thread title. Google is accused of selling advertising online in France and not declaring the contracts.

  10. #10
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    Well, it certainly won't be a problem for Google, that's just pocket change. And Google is in the position where everyone depends on it. If they are abiding by the law, their strategy makes perfect sense.

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