France fines Google nearly €1 billion

epa06779589 (FILE) - Google signage on their campus in Mountain View, California, USA, 30 March 2018 (reissued 02 June 2018). According to media reports on 01 June 2018, Google will not renew its contract with the US Department of Defense in relation to Project Maven, a program under development to use Artificial Intelligence to analyze footage gathered from drones. The move comes after reports of Google's employees objecting to the company's participation in the project, which would presumably be used in lethal overseas operations involving military UAVs. EPA-EFE/JOHN G. MABANGLO

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The French government and Google have reached a €945 billion settlement over tax fraud allegations, concluding investigations by authorities that have been ongoing for years.

A Paris court approved the penalty on Thursday of €500 million over charges of tax evasion, and an additional €465 million to settle claims with French tax authorities.

The ruling concludes investigations by the French authorities which have been ongoing since 2015. Tax investigators concluded that Google failed in its tax obligations by not declaring activity on French territory to the authorities.

Due to tax loopholes surrounding digital earnings, Google is able to declare most of its earnings in Ireland where corporation tax in 12.5%. This is usual practice for many multinationals which declare profits from activities across Europe in one country; governments, however, are beginning to clamp down this practice.

France has been leading the way in reexamining taxes on digital operations.

Via France 24

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