Tuesday, May 24, 2016

Google offices raided in Paris for an investigation into tax evasion – La Nacion (Argentina)

Justice investigates tax maneuvers that applies the company to reduce tax payments in France and take advantage of tax benefits offered Ireland

a newspaper guard at the entrance of the offices of Google in Paris. Photo: EFE

Dozens of French police raided on Tuesday the offices of Google in Paris, as part of an investigation into giant digital world for alleged tax evasion

Google, which holds that fully complies with French law, is under pressure throughout the European continent of public opinion and governments angered by the way multinationals exploit their presence around the world to reduce the minimum taxes paid. Apple, Amazon and other technology are also being investigated.

In the raid involved researchers from the French financial prosecution and the brigade major financial crimes, along with 25 specialists in information technology. The investigation began in June last year.

“The research aims to verify that Google Ireland Ltd has permanent basis in France and if, by not declaring part of its activities in France, failed to comply with its obligations tax, including those in corporate tax and value-added taxes, “said the prosecutor’s office said in a statement.

Google, whose parent is Alphabet Inc, pay few taxes in most European countries because It informs almost all its sales in Ireland. This is possible thanks to a loophole, but requires that its staff in Dublin close all sales contracts.

If employees in countries like France close contracts with local customers, then the company would be obliged to report revenue locally and pay taxes in each country.

“We are cooperating with the authorities to answer your questions,” said Al Verney, a spokeswoman for Google in Europe, in a statement sent by email.

the raid Tuesday is part of an investigation for tax fraud and organized aggravated washing money from the fraud. Research, caused by a complaint from the French tax agency, began in June 2015 but was recently public on Tuesday.

If found guilty, Google faces a fine of up to 10 million or a fine for half the amount laundering involved

Reuters

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