(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 Franceâ€™s equivalent of the IRS (Direction gÃ©nÃ©rale des finances) due to tax noncompliance in 2011. The agency has been investigating Googleâ€™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 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 Franceâ€™s revenue could go directly to Googleâ€™s European headquarters in Ireland where the corporate tax is only 12.5 percent. French news website Owni obtained Google Irelandâ€™s 125-page financial statements for 2011, certified by Ernst & Young, in order to corroborate Le Canard enchaÃ®nÃ©â€™s investigation.