The way Google and other technology companies conduct their tax affairs in Europe has come under criticism, Google recently agreed to pay the UK taxman £130 million in back taxes and now it looks like the French tax authorities want a lot more from the search giant.
According to a recent report by Reuters, the French tax authorities are looking to claim a massive €1.6 billion in back taxes from Google.
This is certainly a lot more that Google had to pay in the UK, more than 10 times what the UK tax authorities agreed with Google. There is a slight difference though with the French tax authorities and the UK ones, the French authorities have said that they will not be making a deal with the search giant on the tax bill.
If the company is presented with the €1.6 billion bill by the French authorities, it can either choose to pay it, or take it to court if it doesn’t believe it owes that amount.
Google, Amazon, Apple, Starbucks and many more companies have come under criticism in Europe for the way they run their tax affairs, although none of the companies are doing anything illegal, so maybe it is time that the tax rules are changed in order to make sure that the correct amount of taxes are paid in each country.