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Jul 12, 2017

Google wins challenge against US$1.3 billion French tax bill

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PARIS -- U.S. internet giant Google (GOOGL.O) on Wednesday won a court challenge against demands by French authorities that it pay 1.1 billion euros (US$1.3 billion) in back taxes.

The Paris administrative court ruled that Google Ireland Limited was not subject to corporate and value-added taxes for the period 2005-2010, striking down the tax administration's demands for back payments.

The ruling in favour of Google, now part of Alphabet Inc., followed a court adviser's recommendation that Google did not have a "permanent establishment" or sufficient taxable presence to justify the bill.