Google faces sizable French tax bill

Google (GOOG) has received a demand from France that could force the search giant to pay hundreds of millions of euros in tax.

Like many other countries, France is unhappy with Google's corporate structure, which enables it to recognize revenue through a subsidiary in Ireland, where the tax rate is very low.

In February, it was reported that the French government could demand that Google pay €500-1B. (10-Q filing)

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Comments (8)
  • gmmpa
    , contributor
    Comments (680) | Send Message
    Socialism and Fascism seems to be running wild in the industrialized countries of the world including the red and blue "not so" United States of America. Liberty, freedom, and capitalism are disappearing rapidly worldwide and few even realize it. France is declining in population and is running out of money, population and companies to tax to fund their failed social experiment. This news is a sure sign that France and the European union is running out of other people's money.


    Just imagine what this movement will do if the USA gives up control of the Internet. This is only the beginning of the end of any chance for Liberty, Freedom and world peace if this keeps up. World War III will not be a shooting war. It will be worst. This is a sure sign of things to come. Hold on to your wallet investors. The ride is going to get bumpy.
    25 Apr 2014, 08:02 AM Reply Like
    , contributor
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    I see that you collect classic cars....along with old worn out cliches that you probably heard on Rush Limburger's program.


    Big companies that manipulate tax loopholes will eventually have to pay up.
    That French government spends about $7000 per year to have the best healthcare in the world (and covers everyone), while we (USA) spend over $10,000 per year (per citizen) and leave 40 million out in the cold.


    Switzerland pays insurance companies 6% to administer national health, while we pay 20+%.


    You would like to privatize everything. Imagine that world. I could see the add now, "Got a fire, call us for an estimate."

 's almost time for Rush can pick up a few new Cliches.


    25 Apr 2014, 09:34 AM Reply Like
  • duhaus
    , contributor
    Comments (320) | Send Message
    Liberty, freedom, socialism, . . liberty, freedom, socialism . . liberty, freedom, socialism. Nope, sorry you still haven't scared me into believing the latest "news" entertainment's manufactured hysteria. Bad parrot.
    25 Apr 2014, 10:31 AM Reply Like
  • gmmpa
    , contributor
    Comments (680) | Send Message
 ... You should not comment on the content of radio shows that you have never listened to and don't even know how to spell Limbaugh. Since when is Liberty, Freedom, and Free market capitalism a clinch? It is the opposite of an over blown dictatorial, oppressive big socialist government that is obsessed with the confiscation of wealth from people that work hard and smart to accumulate wealth solely to redistribute it to someone that wants to work 30 hours week and take 8 week vacations and complains about CEO salaries while sitting in the cafe drinking French wine. I guess that is what you mean by a clinch. Never the less I call it the TRUTH. I don't care what you call it.


    Google provides a service that makes the world a better place live, work and play. It charges for its services and helps the economies of countries that use these services by bring together producers of goods and services in that economy for a FEE and those that want these goods and services in that economy for FREE. What is it that the French government contributes that warns taxing earnings outside of France? And who the hell cares about French healthcare anyway!


    The internet is a wonderful place it allows those that post no bios on SA that use gmail services from companies like Google provided for FREE. It allows you to criticize those successful companies anonymously on free websites that France didn't build and are using for free advocating they are cheating the government of France out of money they did nothing to deserve. They should be paying Google!
    25 Apr 2014, 10:57 PM Reply Like
  • eh.geee@gmail
    , contributor
    Comments (46) | Send Message
    Retroactive tax laws are a symptom, not a solution.
    If France, or the USA more importantly, is unhappy about corporations working within the letter of the law, then they should ask the people to vote on initiatives to change laws.
    The US Government could start with Wal*Mart, BP, GE, military weapons makers, and various food, drug, alcohol, tobacco and firearms makers and simply remove the handmade loopholes and subsidies.
    Once you cut off the outflow of largesse to the multinational corporations with millions invested in lobbyists and buying lackey politicians to do their bidding, then, you could starting some sort of forward-looking taxation reform to modernize the government revenue means to function with reasonable taxes on Internet-based commerce.
    Until Wal*Mart, GE and Berkshire Hathaway pay 35% tax on their top line, there's no merit in attempting to tax (let alone retroactively tax) Internet companies operating within the law as it stands.
    While I see corporate revenues as the logical place to fix taxes, the giant of tax, dwarfing all else, is the way indirect taxation (government fines, fees and penalties) targets middle income (if there is such a thing today) and low income people.
    25 Apr 2014, 11:52 AM Reply Like
  • lupoab
    , contributor
    Comments (7) | Send Message
    why not isolate france from google services and have them beg to get it back.
    25 Apr 2014, 04:39 PM Reply Like
  • tan theta
    , contributor
    Comment (1) | Send Message
    You can't be that big and not contribute to a place where you operate. For companies where you operate is where you live. Who should pay for the infrastructure that Google uses in France? Can't google run their business profitably and contribute to the locations where they operate? Is this a viable business if all the profits come from loopholes?
    27 Apr 2014, 02:14 PM Reply Like
  • gmmpa
    , contributor
    Comments (680) | Send Message
    tan theta...


    Google runs funds 12 very large data centers world wide. This is the only infrastructure they support. Wisely they have none in France.


    Last time I looked I pay Verizon for the service to indirectly access to Internet services in worldwide. It is Verizon that collects federal, state and local taxes in one bundled charge including $37.50 time 3 extra among other federal surcharges for each of my three smartphones in my family so that President Obama can give free smartphones to his voters . It is Verizon and other carriers like Comcast, Direct TV and Time Warren not the government that builds out my Internet infrastructure. Google and many others provides Internet content without which there is no Internet. Who pays Google for this content? Not the France government? I say they provide NOTHING and they should get NOTHING.


    French socialist policies are driving all the producers out of its country and they are running out of people to fund their social experiment. Google does not use the Internet infrastructure French citizens and French businesses do. No one is forced to use Google, Yahoo, or any of the other content providers.
    27 Apr 2014, 09:11 PM Reply Like
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