French Government to appeal against the court's ruling that was in favour of Google

The French government said on Thursday it would appeal against a court ruling in Google's favour with regard to 1.1 billion euros ($1.25 billion) in tax.

"We will appeal this judgment in defence of the interests of the state," budget minister Gerald Darmanin said in an answer to a parliamentary question on Wednesday's ruling. The Paris administrative court said Google, the main business of U.S.-based Alphabet Inc, was not liable for the tax demand, in line with a court adviser's recommendation made in June.

This is not the first time the US tech giant has been put under the scanner for taxation in Europe. It was previously fined for $ 3 billion by the European Union for an antitrust case.

The court battle between the French government and the California-based tech giant went for six years. French Budget Minister, Gerald Darmanian, had asked Google to pay taxes for providing services to insert ads online in France. According to the French tax administration, Google was liable to pay for the services it provided from its Ireland office in France. However, the court noted that since the Google Ireland office, did not have the human resource to set a permanent office in France, it won't be taxed.

According to a Guardian report, most of the US tech giants have come under the scanner, where the European countries are attacking these companies for paying low taxes.

With inputs from Reuters


Published Date: Jul 14, 2017 08:52 AM | Updated Date: Jul 14, 2017 08:52 AM