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Google unpaid taxes: France seeks €1.6bn from search giant | Google unpaid taxes: France seeks €1.6bn from search giant |
(about 13 hours later) | |
French authorities have demanded that Google pays €1.6bn ($1.8bn; £1.3bn) in unpaid taxes. | French authorities have demanded that Google pays €1.6bn ($1.8bn; £1.3bn) in unpaid taxes. |
The figure is substantially more than the £130m the search engine agreed to pay in back taxes to UK authorities. | The figure is substantially more than the £130m the search engine agreed to pay in back taxes to UK authorities. |
However, France's AFP news agency reported that Google might be able to negotiate and may not pay the full sum. | However, France's AFP news agency reported that Google might be able to negotiate and may not pay the full sum. |
The company's chief executive, Sundar Pichai, is visiting Paris and was due to meet the France's economy minister Emmanuel Macron on Wednesday night. | The company's chief executive, Sundar Pichai, is visiting Paris and was due to meet the France's economy minister Emmanuel Macron on Wednesday night. |
It is not clear if they will discuss the tax issue. | It is not clear if they will discuss the tax issue. |
Earlier this month, French Finance Minister Michel Sapin ruled out striking a deal with the US company. | Earlier this month, French Finance Minister Michel Sapin ruled out striking a deal with the US company. |
Google would not comment on reports of the tax demand and French officials said the matter was confidential. | Google would not comment on reports of the tax demand and French officials said the matter was confidential. |
Tax scrutinised | Tax scrutinised |
The tax arrangements of international companies have come under close scrutiny recently. | 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. | 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 Ireland, even when sales appear to relate to the UK. | In Google's case, its tax structure allows it to pay tax in Ireland, even when sales appear to relate to the UK. |
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. | 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. |
Earlier on Wednesday the UK Public Accounts Committee (PAC) said the £130m settlement "seems disproportionately small", compared with the size of its UK business. | Earlier on Wednesday the UK Public Accounts Committee (PAC) said the £130m settlement "seems disproportionately small", compared with the size of its UK business. |
Brussels investigates | Brussels investigates |
Europe's competition authorities have been examining whether some deals struck by big companies with national tax authorities amount to illegal state aid. | Europe's competition authorities have been examining whether some deals struck by big companies with national tax authorities amount to illegal state aid. |
Starbucks and Fiat Chrysler were told they must pay back up to €30m (£22m) in taxes after European tax breaks were ruled illegal. | Starbucks and Fiat Chrysler were told they must pay back up to €30m (£22m) in taxes after European tax breaks were ruled illegal. |
But the two companies disagreed with the ruling, and Starbucks said it would appeal against the decision. | |
Further investigations into tax deals, including those covering Amazon and Apple, are continuing. | Further investigations into tax deals, including those covering Amazon and Apple, are continuing. |
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