Latest reports reveal that France’s tax authorities accused search engine giant Google for a tax claim of 1 billion Euros.
This verdict came as a result of the financial inspectors monitoring accounts of the Paris-centered offices of Google back in June 2011.
Google has reportedly minimized the tax amount payable to France by streaming its earnings via Dutch-verified intermediary and then channeled to a Bermuda-based holding, Google Ireland Limited.
Currently, France’s socialist republic is regarded as one of the highest taxed nations worldwide, comprising of 75 percent of income tax rate.
As per to court files grabbed by AFP, the French official news department, Google France disclosed 192.9 million Euros of earnings in 2012, and deposited 6.5 million euros tax on the revenue of 8.3 million euros it collected.
On the other hand, analysts are of the opinion that search engine behemoth Google yielded over 1.4 billion in earnings in France back in 2011, with thanks mainly to its advertising business.
A prominent news magazine Le Point alongside other national papers has published that French tax department has claimed tax from Google.
The Paris treasury hasn’t commented on this issue yet by mentioning that anyone’s tax matters is its own personal issue. A Google representative also refused to talk on this hot issue.
French president Francois Hollande has been regarded as the driving force behind the country’s economic exploitation since he took the president’s office back in 2012. The current inflation rate is over 11 percent, whereas the living cost is also worsening.
The stats disclosed last week revealed that overseas investment in France was slashed by a phenomenal 77 percent last year.
France is devoted to shake hands with several multinational firms who refused to invest heavily in the failing government due to its massive debt issues.