(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 Franceâs equivalent of the IRS (Direction gÃ©nÃ©rale des finances) due to tax noncompliance in 2011. The agency has been investigating Googleâs 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 enchaÃ®nÃ© (which has an excellent track record for investigations) first obtained a letter that the Direction gÃ©nÃ©rale des finances sent to Google France asking it to pay $1.3 billion (â¬1 billion) in tax penalties.
Most of Google Franceâs revenue could go directly to Googleâs European headquarters in Ireland where the corporate tax is only 12.5 percent. French news website Owni obtained Google Irelandâs 125-page financial statements for 2011, certified by Ernst & Young, in order to corroborate Le Canard enchaÃ®nÃ©âs investigation.