(Nov 1, 2012) Google France Faces Fine Of $1.3 Billion For Tax Noncompliance.
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.
The French weekly Le Canard enchaîné (which has an excellent track record for investigations) first obtained a letter that the Direction générale des finances sent to Google France asking it to pay $1.3 billion (€1 billion) in tax penalties.
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.