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Google doesn't owe taxes in France, court rules

Tyrone Stewart

GoogleGoogle has won a €1.12bn (£988m) French tax bill battle after the court ruled that it didn’t abuse loopholes to avoid paying taxes in the country.

The case was brought against Google due to the fact it routes its French sales out of Ireland. However, the court ruled that Google Ireland, the company’s European headquarters, can’t be taxed as the company also holds a permanent base in France.

“Google Ireland Ltd. isn’t taxable in France over the period 2005-2010,” the court told Bloomberg in a statement.

In addition to this financial case, Google is also subject to a criminal case that seeks to verify whether Google Ireland has a permanent establishment in France and, as a result of this, whether it has been failing to declare part of its French income.

“The French Administrative Court of Paris has confirmed Google abides by French tax law and international standards,” Google told Bloomberg. “We remain committed to France and the growth of its digital economy.”

Last month, Google was hit with a record €2.42bn fine from the European Commission after it was ruled that the company abused its power to promote its own shopping service ahead of others. It is also believed that Google could face another record-breaking fine, this time over its Android operating system.