Google settles fiscal fraud probe in France for $550m
Google agreed to pay a $550.0m fine in France to settle a fiscal fraud probe that began four years ago, the country's financial prosecutor’s office announced on Thursday.
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The investigation revolved around whether the company’s headquarters in Dublin were paying a fair amount of taxes or failing to declare some of its activities in the country.
Google was found to be using a loophole that allowed it to report most of its sales in Ireland - where taxes are lower - and thus avoid making tax payments in other European countries.
A Google spokesperson said the settlement brings an end to the tax and related disputes that have “persisted for many years.”
“The settlements comprise a €500.0m payment that was ordered today by a French court, as well as €465.0m in additional taxes that we had agreed to pay, and that have been substantially reflected in our prior financial results,” the spokesperson said in a statement.
“We continue to believe that the best way to provide a clear framework for companies that operate around the world is co-ordinated reform of the international tax system.”
Shares of Google were up as much as 1.4% on Thursday.