Google found not liable for French back taxes
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.
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
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
Questions
Where does Google pay tax?
What is the tax position for multinationals in your country?
Where should companies pay tax?
Where does Google pay tax?
What is the tax position for multinationals in your country?
Where should companies pay tax?
Grammar
The text uses the present perfect several times. Can you identify why it is being used?
Highlight text for solutions
In paragraphs 1, 3 and 4, the present perfect is used because we are discussing past events, but without time indicators. These are general statements about the past
Click for more present perfect grammar
The text uses the present perfect several times. Can you identify why it is being used?
Highlight text for solutions
In paragraphs 1, 3 and 4, the present perfect is used because we are discussing past events, but without time indicators. These are general statements about the past
Click for more present perfect grammar