But they’ve made a mess of this on Google’s French taxes.
French tax inspectors searched Google’s Paris offices in June 2011 as it opened a probe into how the company implements transfer pricing between its different units – a strategy many multinationals use to shift revenue and tax liability between countries.
It’s not about transfer pricing at all. Google simply sells all its French advertising through a non-French company. And under EU law it’s perfectly entitled to do so.
And that’s it, finis.
His comments follow reports that France is seeking €1bn in tax from Google over its fiscal strategies.
The French simply do not have a valid claim.
France is also involved in a battle over $252m of disputed back taxes with online retailer Amazon, which channels all its European earnings through Luxembourg to take advantage of the Duchy’s low corporate tax rates.
No, Amazon is in Luxembourg over the VAT rate, not corporation tax rates.