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Cancellation of Google's tax recovery in France confirmed on appeal



The Administrative Court of Appeals in Paris, seized in July 2017 by the Minister of Public Accounts, Gérald Darmanin, confirmed on Thursday the cancellation of the tax adjustment imposed by the French state on the US giant Google. The Court, through five judgments, "upheld the judgments of first instance that issued the tax assessments of the company Google Ireland Limited, of which it was subject" for the years 2005 to 2010, it said in a press release.

The judges rejected the tax administration's argument that Google France LLC "depended on Google Ireland Limited and that its employees had the power to enter into contracts on behalf of the Irish company."

They considered, on the contrary, that "the facilities and staff of the LLC Google France were available only to the French company for its own activity under the service contract, linking it to the Irish company."

Mr. Darmanin had appealed after the cancellation on July 12, 2017, by the Paris Administrative Tribunal of the fiscal adjustment of 1.15 billion euros inflicted on the American giant. He had, however, opened the door to "a transactional agreement."

When questioned by AFP, his ministry refused to comment on court decisions.

(With AFP)


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