Report from local French sources alleged that Google’s office in Paris was raided in the early hours of today over tax evasion allegations.
The raid is connected to Google’s long term battle with French authorities over its lower tax receipts. Google is fully registered in the Republic of Ireland where on about 12% corporate tax is charged on its total corporate profits. In France Google is expected to pay up to 33%. Because of its status, only sales done in France will be charged.
However, the company has also been accused of directing many sales it closed in France to its Irish office, the company has denied the allegation saying it will cooperate with French authorities over the matter.
Google has come under intense scrutiny across Europe especially where the company has been accused of using various accounting tactics to shrink its tax payments. French government believed Google has made over EUR 1 billion last year and it only paid USD 5 million as tax.
In the same battle Google agreed to pay about USD 190 million in settlement over tax evasion allegations. It is still unclear what Google would do to solve all allegations of tax evasion against it. If it continues to cave in to various governments, the company’s mode of operation would have to be reviewed in the near future.
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