Google wins challenge against 1.1 billion-euro French tax bill

The ruling in favour of Google, now part of Alphabet Inc , followed a court adviser's recommendation that Google did not have a "permanent establishment" or sufficient taxable presence to justify the bill.
The ruling in favour of Google, now part of Alphabet Inc , followed a court adviser's recommendation that Google did not have a "permanent establishment" or sufficient taxable presence to justify the bill.PHOTO: AFP

PARIS (REUTERS) - A French court ruled on Wednesday that Google was not liable to pay 1.1 billion euros (S$1.73 billion) in back taxes demanded by the French authorities.

The Paris administrative court ruled that Google Ireland Limited was not subject to corporate and value-added taxes for the period 2005-2010, striking down the tax administration's demands for back payments.

The ruling in favour of Google, now part of Alphabet Inc , followed a court adviser's recommendation that Google did not have a "permanent establishment" or sufficient taxable presence to justify the bill.

In a statement, the French finance ministry said it was considering an appeal, which must be lodged within two months.