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November 1, 2012

Google denies reports of €1bn tax claim by French authorities

France revealed plans to implement a law that would mandate search engine giant Google to pay for linking content from the French media

By CBR Staff Writer

Search giant Google has denied a report published in a French publication that claims it had received a €1bn tax claim from France.

The French newspaper Canard Enchaine reported that the French Tax Administration was seeking to know whether Google’s practice of charging French advertisers through its European headquarters in Ireland had helped the company paying less taxes in the country.

Le Canard Enchaine reported that the company generated an annual revenue of estimated €1.25-€1.4bn, but had only declared €138m, paying over €5m in corporate tax.

The newspaper also reported that the French Tax Administration has notified letter of the claim to Google.

Google France spokeswoman said that the company has not received any tax assessment from the French tax administration.

"She acknowledged the company was in talks with the taxman about its affairs but declined to give details," spokeswoman said.

"We have and will continue to cooperate with the authorities in France. Google complies with tax law in every country in which the company operates and with European laws."

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During late October, France revealed plans to implement a law that would mandate search engine giant Google to pay for linking content from the French media, until it agrees to sign a deal with media channels.

Besides, Google has opposed the plan and threatened to bar French websites from its search results if the tax was implemented against the firm.

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