Google braced for French tax demand

Google faces a tax demand from the French government that could reach into hundreds of millions of euros.

A regulatory filing confirmed reports earlier in the year that the French authorities objected to Google’s European tax structure, which sees the search and online advertising company recognize revenues through an Irish subsidiary. “In March 2014, we received a tax assessment from the French tax authorities,” Google said. “We believe an adequate provision has been made and it is more likely than not that our tax position will be sustained. However, it is reasonably possible that resolution with the French tax authorities could result in an adjustment to our tax position.” French magazine Le Point reported in February that the sum, relating to an investigation which began in 2011, could total between €500 million and €1 billion.