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!

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!