Don't miss

Replay


LATEST SHOWS

BUSINESS DAILY

US department store Sears faces possible closure

Read more

THE INTERVIEW

Thomas Friedman on technology, Trump and the media

Read more

IN THE PAPERS

'Terror in Westminster'

Read more

MEDIAWATCH

Internet users say 'we are not afraid' after Westminster attack

Read more

FOCUS

Pakistan faces water crisis

Read more

ENCORE!

Film show: 'Midwife', 'Beauty and the Beast' and 'Girl Asleep'

Read more

MIDDLE EAST MATTERS

The hidden collection: Iran exhibits contemporary art masterpieces

Read more

BUSINESS DAILY

More countries suspend Brazilian meat imports amid scandal

Read more

IN THE PAPERS

Brussels attacks, one year on: 'What if their hate has contaminated us?'

Read more

Business

Google hopes for France tax deal ‘by end of year’

Text by News Wires

Latest update : 2012-11-21

Google chairman Eric Schmidt said on Monday that the company hopes for a settlement with France over a billion-dollar tax dispute “by the end of the year”, but insisted that the company did not want to pay for content it does not host.

Google chairman Eric Schmidt said Monday he hopes his firm will reach a settlement "by the end of the year" with authorities in France in a billion-dollar dispute over taxes.

"We had some good discussions, and I would expect that we will reach some kind of agreement by the end of the year," he told The New York Times in an interview.

Google did not immediately respond to an AFP inquiry on Schmidt's comments.

In the interview, the Google executive chairman appeared to maintain the company view that it does not owe a massive tax bill to France.

"Whenever you are dealing with government, you want to be very clear about what you will do and will not do," Schmidt was quoted as saying.

"And we don't want to pay for content that we do not host. We are very clear on that."

According to Paris-based news weekly Canard Enchaine, French tax authorities have made a billion-euro ($1.3 billion) claim against Google over financial transfers between Google's Irish holding company and its French unit for four tax years.

Google France told AFP this week that it had received no such tax claim, and that it complies with tax laws in all the countries in which it operates.

According to court documents, a Paris appeals court has rejected a request Google to invalidate the search and seizure of documents by French tax authorities.

According to the court decision dated August 31, the French tax authorities believe that "the company Google Ireland Limited in practice carries out commercial activities in France using the human and material resources of the company Google France, without making the corresponding tax declarations."

Google reduces the amount of tax it pays in France by funneling most revenue through a Dutch-registered intermediary then to a Bermuda-registered holding Google Ireland Limited, before reporting it in low-tax Ireland.

(AFP)

Date created : 2012-11-05

  • INTERNET

    France 'hits Google with €1 billion claim' in content row

    Read more

  • FRANCE

    Google to meet President Hollande over content bill dispute

    Read more

  • INTERNET

    Google threatens to stop linking to French media sites

    Read more

COMMENT(S)