tax Stories July 13

GOOG: 947.16

3.33

A French court has ruled against the country’s own tax authority, and decided that Google need not pay a €1.11B ($1.27B) tax bill. Although the ruling so far applies only to Google and only in France, it sets a precedent that could influence other cases in Europe.

The French government took the view that when Google sold ads to French companies, that revenue was earned in France, and was subjected to taxes there. Accordingly, it sent the company a bill for almost $1.3B, covering ads sold in the country between 2005 and 2010, down from an earlier demand for €1.6B …

expand full story

tax Stories May 4

GOOG: 931.66

4.62

Google settles Italian tax dispute with $334 million payment

Following a settlement with Russia last month over Android pre-install restrictions, Google has agreed (via Reuters) to pay Italy €306 million in unpaid taxes from 2002 through 2015.

tax Stories May 24, 2016

GOOG: 720.09

15.85

Update: The financial prosecutor’s office has confirmed that the raid took place, and is part of an investigation in to tax evasion and money laundering. As reported by Reuters:

The investigation, which started in June last year, aims to verify whether Google Ireland Ltd (GOOGL.O) has failed in its fiscal obligations in France, the prosecutor’s office said in statement.

According to several breaking news reports, Google’s headquarters in Paris are being raided this morning by French investigators as part of a probe into the US company’s tax payments. Both Le Parisien and Reuters were informed by sources that a search is underway at the HQ in Paris’s 9th district.

expand full story

Everyone can use an Echo Dot: Just $50!

tax Stories March 28, 2016

GOOG: 733.53

-1.77

TNW reports that the European Commission is pressing ahead with proposals to make Google News pay a fee for linking to news stories on the web. The EC says that as search results include a short excerpt from the piece, and that text is protected by copyright, Google must pay.

Three European countries have tried this, and it failed in all three. In Spain, Google simply decided to close Google News in that country, and news websites lost 10-15% of their traffic overnight. Spanish publishers – who had originally demanded the law – quickly realized their mistake and tried to pass a new law that would somehow force Google to return …

expand full story

tax Stories February 29, 2016

GOOG: 697.77

-7.30

Google could effectively recoup all the tax it paid last year if Intel wins test case

A tax dispute between Intel and the IRS currently headed to the appeals court could set a precedent that would see Google’s parent company Alphabet reclaiming $3.5B in tax benefits – more than all the tax the company paid last year. The WSJ reports that Google is one of a number of tech giants following the case closely.

The case, which the IRS appealed to the Ninth U.S. Circuit Court of Appeals last week, is being closely watched in the tech industry and elsewhere. At least 20 companies, including Microsoft and eBay, have disclosed they’re monitoring the outcome of the case involving share-based compensation.

In essence, the case hinges on share compensation packages paid by overseas subsidiaries. The IRS says that the cost of these should be offset against the expenses of the overseas companies; Intel says no, the cost should be deducted by the U.S. parent company – reducing its tax liabilities in its home country.

The IRS introduced the rule in 2003. Companies like Google have abided by the rule but reserved the right to reallocate costs if a court ruling went against the IRS, giving them a huge potential windfall.

Google has recently come under fire for its tax arrangements in Europe, a $185M back-tax deal in the UK being described as “disproportionately small” and possibly illegal. France is currently seeking to claim $1.76B from the company in back taxes.

Photo: Reuters

tax Stories February 25, 2016

GOOG: 705.75

6.19

Just one day after the UK’s public spending watchdog described the £130M ($185M) back-tax paid by Google in the country as “disproportionately small,” France is demanding a rather larger sum. Reuters reports that the country’s finance ministry believes Google owes €1.6B ($1.76B).

“As far as our country is concerned, back taxes concerning this company amount to 1.6 billion euros,” the official, who spoke on condition of anonymity, said […]

Earlier this month, Finance Minister Michel Sapin ruled out striking a deal with the U.S. search engine company as the British government recently did, saying the sums at stake in France were “far greater” than those in Britain … 

expand full story

Powered by WordPress.com VIP