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

The 9 Most Dangerous Countries for Tourists to Visit

Reign of Terror: The 10 Most Ruthless Politicians in History

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations 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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!