hundreds of officers, including financial and computer science experts, search the branch of the Group. There is a suspicion of tax fraud, as Google settles revenues over its European headquarters in Ireland.
The Paris branch of the Internet company Google has been searched on Tuesday by tax inspectors. Investigators relate to allegations that the US company has recorded transactions in Ireland on a large scale, although he would sign in France and are taxed. The state demand payments amounting to EUR 1.6 billion of Google, reported French media. The Ministry of Finance, the sum is not officially confirmed.
Google has in France as a branch in Germany. However, these companies are noisy business purpose only there to give contracts to the European headquarters of the group sitting in Ireland. Who wants to turn on Google ads, so do not conclude a contract with the establishment but is a business partner of Dublin representative. In Ireland, the tax rate for companies is less than half as high as in Germany. Google also shifts profits from Ireland on a company’s design in the Netherlands in the Caribbean. There corporations have to pay partly no tax. Financial people call this model the “Double Irish Dutch Sandwich”. Google is considered best-known users of this legal tax tricks.
French officials now consider, however, whether the group but the country is not more tax. The preliminary investigation was opened after a complaint by the French tax authorities already in June, said the financial prosecutor. On the search were about a hundred officers were involved, including financial and computer science experts. The prosecutor stressed both the presumption of innocence. Google took unspecified position. “We comply with the tax laws in France as well as in all other countries where we operate,” a spokesman said simply. Google cooperating with the authorities.
In Europe, the tax tricks by corporations are increasingly under fire. The European Commission is organizing several cases against member states, because they give unfair tax breaks from Brussels view international companies. Prominent cases are the Luxembourg branch of online retailer Amazon and the Irish Society of the IT group Apple. The European Commission wants to oblige the States subsequently reclaim taxes from the company; the procedures remain open. However, governments could defend itself against the claim. They fear that the corporations would move if they could get no tax benefits in the country longer.
The Group of Twenty major industrialized and emerging countries (G20) has also spoken out recently against tax evasion. For national annual reports should be replaced. Companies like Google would list how much revenue and employees they have in every state. However, these reports should be only control officers available to protect its trade secrets.