Abu Dhabi, UAESunday 8 December 2019

Google slapped with €500 million fine in France over tax probe

Budget minister Gerald Darmanin welcomed the "definitive settling" of the contentious issue

In this file illustration picture taken on July 10, 2019, the Google logo is seen on a computer in Washington, DC; US internet giant Google has agreed a settlement totalling 945 million euros ($1.0 billion) to settle a tax dispute in France AFP
In this file illustration picture taken on July 10, 2019, the Google logo is seen on a computer in Washington, DC; US internet giant Google has agreed a settlement totalling 945 million euros ($1.0 billion) to settle a tax dispute in France AFP

US internet giant Google will pay a total of €945 million over a tax dispute in France, under an agreement announced in court on Thursday.

The company will pay a €500m fine for tax evasion and €465m to settle claims with French tax authorities.

Google confirmed the settlement, which puts an end to fiscal differences it had with France for years.

French Justice Minister Nicole Belloubet and Budget Minister Gerald Darmanin welcomed the "definitive settling" of all the contentious issues, saying the outcome was the result of two years of intense work by the French authorities.

"This outcome is good news for the public finances and fiscal fairness in France," they said in a statement.

Ms Belloubet said the settlement showed that the French authorities have the tools to ensure an equitable tax system.

"It is a historic settlement both for our public finances and because it marks the end of an era," Mr Darmanin said.

"By normalising Google's situation in France, it responds to our citizens' demands for fiscal fairness."

The settlement comes as France and European allies, seek to find common ground with the US in a long-running dispute about taxing major digital companies.

French President Emmanuel Macron said alongside US President Donald Trump at the G7 summit in August that leaders had reached an agreement on taxation, although the precise details remained to be worked out.

Updated: September 13, 2019 03:59 AM

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