Google Inc (GOOG) Won’t Win Tax Lawsuit: French Official

Google Inc (NASDAQ:GOOG) has been in discussion with French officials regarding a tax bill that France claims the online company owes for its revenue that came from France. Now, as the estimated tax bill is now 70 percent higher than the original estimate, the French budget minister spoke out this week claiming that Google would not win any lawsuit claiming a lower tax bill or claiming not to owe the money at all.

Google Inc (GOOG)French official Jerome Cahuzac said in an interview recently that he was convinced that the French government has a strong case to collect more than $2 billion in taxes from Google Inc (NASDAQ:GOOG), though he affirmed that talks were ongoing with the company that a settlement or resolution can be reached. Cahuzac said he had “the most genuine conviction” that the French courts would side with the government should Google decide to launch a legal challenge.

French officials are pursuing similar collections from Amazon.com Inc (NASDAQ:AMZN), as the country claims that is it owed more than $250 million in back taxes by the online retailer.

It is reported that Google Inc (NASDAQ:GOOG) pays all of its EU taxes through Ireland, which has a business-friendly corporate tax rate, by channeling its EU revenue through a Dutch subsidiary and then through a Bermuda-licensed Google Ireland Limited. Under current EU rules, taxes paid through one EU-member country accounts for all the company’s tax liability in the EU. However, the EU has been looking into the rules and how they apply to online businesses, and whether these laws apply correctly to companies that sell across international borders.

What do you think? Does Google Inc (NASDAQ:GOOG) owe the money? Should Google challenge in court, or come to a settlement? If Google winds up paying some percentage of this bill, how do you think this affects the stock for investors like billionaire Julian Robertson of Tiger Management? Is a bottom-line issue, or a public-relations and reputation issue for Google – where it may be acing charges of being a “tax dodger” or “tax cheat”? We’d like your feedback on this ongoing issue!

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!