Benzinga Breakdown: Latest Skirmish In The French-Google War
This morning, Reuters reported French investigators have raided Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)'s Paris headquarters over an ongoing tax case. This is the latest in a series of skirmishes between France and the tech giant.
- In March of 2014, France hit Google with a 1.6 billion euro ($1.79 billion) tax assessment, claiming back taxes were owed.
- The French Finance Ministry has criticized Google for its aggressive tax optimization.
- In June of 2015, in the midst of a battle between Google and Europe over privacy issues, French data protection agency CNIL asked for search results to be removed from all of Google’s search engines, not just those based in Europe.
- In January, Google agreed to pay 130 million pounds to Britain to cover back taxes, but their tax bill in France is much higher.
- Back in March of this year, Google was fined 100,000 euros ($111,720) for not complying with the “Right-to-be-Forgotten” order made in connection with the above referenced privacy squabble.
- Investigators have been probing the company’s Paris HQ since approximately 5 a.m. EST Tuesday.
Governments have begun intensely questioning corporate use of tax loopholes, allowing them to earn massive profits in their countries while having their tax base set up in countries with hardly any corporate income tax.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.