Google slapped with $1B tax bill for funnelling revenue through Ireland

Jack Mc Glynn, ClickOnline.com

, Last Updated: 9:28 AM ET

French authorities are hitting Google with a $1 billion tax bill for channelling funds via suspect intermediary before eventually landing in Ireland.

Reportedly, financial inspectors took to snooping around Google's Parisian offices back in June 2011. They discovered Google has managed to reduce tax payable in France by channelling its cash through a Dutch-registered intermediary and then on to a Bermuda-registered holding firm by the name of Google Ireland Limited, before finally reporting it in low-tax Ireland. (France's top rate of income tax stands at 75%.)

Court documents obtained via the French national news agency (AFP) reveal Google France reported 192.9 million euros of revenue in 2012 and paid 6.5 million in tax on the 8.3 million net profits it earned.

Seems a bit low considering Analysts have estimated Google summoned $1.4 billion in revenue in France back in 2011 alone.


Videos

Photos