13 July 2017 Google has won a legal case brought by French tax authorities. The tech giant will not have to pay 1.1 billion euros in back taxes. The court ruled that Google’s Irish subsidiary does not have to pay tax in France because advertising sold in France by Google’s 700 French employees is processed in Ireland. The tax rates in Ireland are lower than in France. "Google Ireland Ltd isn't taxable in France over the period 2005-2010", according to a court statement. However, in 2015 the company paid 6.7 million euros in French taxes. This case is part of a general move by European authorities to toughen their stand with big American tech companies. Google have been fined 2.4 billion euros by the EU for abuse of their position in the search engine market and Italy and Britain have agreed tax deals to reclaim unpaid tax from the search engine giant. The newly-elected French president, Emmanuel Macron, has stated his intention of gathering more tax from companies perceived as not paying enough.
Vocabulary Highlight text for solution back taxes – taxes not paid in the past, unpaid taxes to rule – to decide (by a government, court, authority, etc.) subsidiary – a company owned by another company (the parent company) to toughen a stand – to be stricter, to make things more difficult for the other person perceived – people think this is the case to abuse (a position) – to use your position or power in an improper way to reclaim – to get back an intention – what someone has decided to do