France said to seek €1.6bn in back taxes from Google

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Sharecast News | 24 Feb, 2016

Updated : 16:08

France is reportedly seeking €1.6bn (£1.3bn) in back taxes from Google.

Reuters cited as source at the finance ministry as saying: "As far as our country is concerned, back taxes concerning this company amount to €1.6bn.”

Earlier this month, French finance minister Michel Sapin ruled out striking a deal with the US internet giant, saying the sums at stake in France were “far greater” than those in Britain.

Last month, Google agreed to pay the UK government £130m in back taxes for the period between January 2005 and June 2015, but the sum was widely criticised for being derisory.

Earlier on Wednesday, Britain's Public Accounts Committee said the amount paid by Google to the British government "seems disproportionately small when compared with the size of Google's business in the UK, reinforcing our concerns that the rules governing where corporation tax is paid by multinational companies do not produce a fair outcome".

It recommended HM Revenue & Customs monitor the outcome of other tax authorities' investigations into Google, and re-open its settlement with the company if relevant new evidence becomes available.

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