France 'seeks 1.6b euros in Google tax'

France is going after internet giant Google, demanding 1.6 billion euros in back taxes.

France is seeking 1.6 billion euros ($1.76 billion) in back taxes from US internet giant Google, criticised for its use of aggressive tax optimisation techniques, a source at the finance ministry says.

"As far as our country is concerned, back taxes concerning this company amount to 1.6 billion euros," the official, who declined to be named, said on Wednesday.

A spokeswoman for Google France declined to comment. An unsourced 2012 media report mentioned a claim for one billion euros by French authorities, which Google denied at the time.

The tax authority usually issues at least one preliminary assessment before its final assessment, which can be challenged in court if not accepted, tax advisers say.

Earlier this month, Finance Minister Michel Sapin ruled out striking a deal with the US search engine company as the British government recently did, saying the sums at stake in France were "far greater" than those in Britain.

Google reached a STG130 million ($A252.65 million) settlement with British tax authorities for the period since 2005, which British politicians criticised on Tuesday as "disproportionately small".


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Source: AAP



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