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French probe into Google tax affairs
Wednesday, January 16, 2013
France?s inquiry into Google?s tax affairs is coming to an end and the results may be announced within the next six months, Technology minister Fleur Pellerin said yesterday.
"It appears that Google, Facebook or others, who are located in France, are not submitted to the same conditions, as far as tax and Vat are concerned, as the French players," Pellerin said in an interview with Bloomberg.
"That doesn?t set the right conditions for a fair competition," he said.
The investigation into Google started two years ago, according to Pellerin.
Meanwhile, France is also weighing options to align the taxes on multinational internet giants such as Google, Amazon and Facebook with those imposed on local companies.
In what may be Europe?s first such effort, president Fran?ois Hollande?s government has said it will look into changing laws this year to prevent online companies from paying levies on French earnings in European countries with lower tax rates.
French officials say Google, Amazon, Apple and Facebook are able to sell to French consumers while not paying the 19.6% French VAT.
Instead, they pay lower rates in Luxembourg or Ireland, where they have their EU headquarters. A French Senate report cited a study showing that Google pays an effective tax rate of 2% to 3%.
"Google complies with tax law in every country in which it operates and we are confident we comply with French law," Anne- Gabrielle Dauba-Pantanacce, a representative for Google in Paris, said.
Bloomberg
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Source: http://feedproxy.google.com/~r/iebusiness/~3/AOgOpsE5ABE/
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