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Last Updated : Apr 25, 2019 10:24 PM IST | Source: Reuters

Google exempt from back taxes in France, appeals court confirms

The latest ruling comes at a time France is trying to crack down on digital service giants and the tax they pay, with the planned introduction of a French levy and as it pushes for broader international reforms.


Google will not have to pay 1.1 billion euros ($1.22 billion) in back taxes demanded by French authorities, an appeals court in France ruled on Thursday, dashing the government's bid to overturn a 2017 decision.

The latest ruling comes at a time France is trying to crack down on digital service giants and the tax they pay, with the planned introduction of a French levy and as it pushes for broader international reforms.

The back tax case centres on a claim by the French finance ministry that Google had declared advertising revenue in Ireland which had actually been earned in France, thus avoiding paying corporate tax and value-added tax between 2005 and 2010.

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But the appeals court in Paris said it agreed with an earlier ruling that favoured the U.S. company and argued that Google Ireland Limited did not have a "permanent establishment" or sufficient taxable presence in France to justify the bill.

 

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First Published on Apr 25, 2019 10:23 pm
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