Reports say about 100 tax officials entered Google's offices in central Paris early in the morning (May 24).
Google has confirmed the raid, which was first reported by the Le Parisien newspaper (link in French).
Police sources confirmed the raid. Google denies wrongdoing. In a statement today it said: "We comply with French law and are co-operating fully with the authorities to answer their questions."
Google is accused of owing €1.6bn ($1.8bn; £1.3bn) in unpaid taxes.
The tax arrangements of international companies have come under close scrutiny recently.
Several have been accused of using legal methods to minimise their tax bills.
In Google's case, its tax structure allows it to pay tax in the Republic of Ireland, even when sales appear to relate to the UK.
Since 2009 to 2015 Google pay from Ireland , and then Google change it to Google Singapore co LTD, since then Google payment processing delayed. ( Right Now, Google AdSense Payment for May 21 - 22 are delayed )
In January, it struck a deal with UK tax authorities to pay an extra £130m in tax for the period from 2005, but that deal was heavily criticised.
The rules on "country-by-country reporting" would affect multinational firms with more than €750m in sales.
The UK Public Accounts Committee (PAC) said the £130m settlement "seems disproportionately small", compared with the size of its UK business.
Europe's competition authorities have been examining whether some deals struck by big companies with national tax authorities amount to illegal state aid.
In April, the EU unveiled plans to force large companies to disclose more about their tax affairs.
They will have to declare publicly how much tax they pay in each EU country as well as any activities carried out in specific tax havens.
Google will indeed have to work fast in Europe now. Apart from the raid and a potentially massive tax bill, it’s facing two anti-trust cases from the European Commission related to its local search results and its Android mobile operating system.
It’s been reported that the commission could seek as much as €3 billion in fines (source : reuters) in the search case, and that the bill will be handed over in the coming weeks. A fine of that magnitude would be three times as large as the biggest fine ever levied by the EU—a €1.1 billion penalty against Intel in 2009.
The Android anti-trust case is an even bigger worry for Google, because it strikes directly at its mobile monetization model, a key growth area for the firm. Those charges were just laid on the tech giant last month; the fines there could also be into the billions. (source: quartz )
Google has confirmed the raid, which was first reported by the Le Parisien newspaper (link in French).
Police sources confirmed the raid. Google denies wrongdoing. In a statement today it said: "We comply with French law and are co-operating fully with the authorities to answer their questions."
Google is accused of owing €1.6bn ($1.8bn; £1.3bn) in unpaid taxes.
The tax arrangements of international companies have come under close scrutiny recently.
Several have been accused of using legal methods to minimise their tax bills.
Google Paris credits Joel Saget/AFP
In Google's case, its tax structure allows it to pay tax in the Republic of Ireland, even when sales appear to relate to the UK.
Since 2009 to 2015 Google pay from Ireland , and then Google change it to Google Singapore co LTD, since then Google payment processing delayed. ( Right Now, Google AdSense Payment for May 21 - 22 are delayed )
In January, it struck a deal with UK tax authorities to pay an extra £130m in tax for the period from 2005, but that deal was heavily criticised.
The rules on "country-by-country reporting" would affect multinational firms with more than €750m in sales.
The UK Public Accounts Committee (PAC) said the £130m settlement "seems disproportionately small", compared with the size of its UK business.
Europe's competition authorities have been examining whether some deals struck by big companies with national tax authorities amount to illegal state aid.
In April, the EU unveiled plans to force large companies to disclose more about their tax affairs.
They will have to declare publicly how much tax they pay in each EU country as well as any activities carried out in specific tax havens.
Google will indeed have to work fast in Europe now. Apart from the raid and a potentially massive tax bill, it’s facing two anti-trust cases from the European Commission related to its local search results and its Android mobile operating system.
It’s been reported that the commission could seek as much as €3 billion in fines (source : reuters) in the search case, and that the bill will be handed over in the coming weeks. A fine of that magnitude would be three times as large as the biggest fine ever levied by the EU—a €1.1 billion penalty against Intel in 2009.
The Android anti-trust case is an even bigger worry for Google, because it strikes directly at its mobile monetization model, a key growth area for the firm. Those charges were just laid on the tech giant last month; the fines there could also be into the billions. (source: quartz )
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