Google, Facebook, Amazon reportedly testifying against France's digital tax
The tech giants will testify on Monday, says a report.
Google will pay $ 1 . 1 billion to end two French fiscal cases following years of outrage over the amount of tax it pays in Europe. Vonnie: so what does this do to the overall tax bill that google is paying ? Tony: you can look at this story in two different ways.
Google agreed to pay close to 1 billion euros ($ 1 .10 billion ) to French authorities to settle a fiscal fraud probe that began four years ago in a deal Google , part of Alphabet Inc, pays little tax in most European countries because it reports almost all sales in Ireland. This is possible thanks to a loophole
After a four-year investigation, Google has agreed to pay almost €1 billion ($1.10 billion) to French authorities because it did not fully declare its tax activities in the country, as reported by.
Google's tax status in the European Union has always been contentious. It pays very little tax in most European countries despite doing business on the continent, because a loophole allows it to avoid taxes by essentially running a shell company in Ireland. This well-known loophole is called theand has been described as the largest tax avoidance tool in history.
French officials had originally($1.76 billion) from the search giant; far more than the £130 million (about $185 million) for similar tax issues there. The French authorities in 2016 as part of their investigation, but eventually a French court and said the company didn't have to pay the fine.
Google could soon face another antitrust investigation
Next week, more than half of the nation's attorneys general are expected to announce an antitrust investigation into Google, The Washington Post reports. Details on the investigation are limited, but it's yet another probe into fears that big tech has amassed too much power. Both Democrats and Republicans have expressed concerns that just a handful of companies control the internet and technology at large. Earlier this summer, a House antitrust subcommitteegrilled executives from Amazon, Apple, Facebook and Google.
Google agreed to pay close to 1 billion euros ($ 1 .10 billion ) to French authorities to settle a fiscal fraud probe that began four years ago in a deal FILE PHOTO: Visitors pass by the logo of Google at the high profile startups and high tech leaders gathering, Viva Tech,in Paris, France May 16, 2019.
Google said on Thursday it agreed to pay 465 million euros in additional taxes to French authorities, boosting the total settlement to end a fiscal fraud probe in the country to nearly 1 billion . France 's financial prosecutor office earlier said Google had agreed to pay half a billion euros in fine.
That wasn't the end of the issue though. Together with Germany, France pushed forover major tech companies including Google, Apple, Facebook and Amazon. With the latest settlement achieved with Google, other tech companies may face similar action in France too
Google has had other legal troubles in France as well. Earlier this year it was(about $57 million) by the French National Commission on Informatics and Liberty (CNIL) for not complying with the EU's General Data Protection Regulation rules about data consent.
Tax fraud: € 1.2 billion fine for Kering in Italy
Theannounced to have reached an agreement Thursday with the Italian tax that will lead him to pay an "additional tax amount" of 1.25 billion euros, including penalties and interest, in the context of a tax evasion proceedings concerning his Gucci brand.
This sum is close to the 1.4 billion euros mentioned in January, taken from an estimate of the fiscal authorities of the Peninsula, in the context of an investigation of the Milan prosecutor's office started at the end of 2017 and relating to suspicions of declaration in Switzerland, activities carried out by the group in Italy.Tax relief and penalties
According to this agreement, a statement said, Kering "acknowledges that the complaints raised by the tax audit concerned the existence of a permanent establishment in Italy over the period 2011-2017, with the associated profits, and on the other hand, intra-group transfer prices applied for the same period between Luxury Goods International (LGI) ", one of its Swiss subsidiaries," and Guccio Gucci ".
So the luxury group will have to pay a tax adjustment amounting to 897 million euros in taxes, to which are added penalties and interests, for a total amount of 1.25 billion, details-t -he.
The impact on Kering's accounts "should materialize in 2019" by "an additional tax expense of the order of 600 million euros", and "in cash by the disbursement of a sum of 1, 25 billion euros, the group said in its statementActivities carried out in Italy but invoiced in Switzerland
The Milan prosecutor's office considered that Kering had invoiced on behalf of LGI, its logistics platform located in Switzerland, activities actually carried out in Italy, in order to benefit from a more favorable taxation
In March, theclaimed that the French giant has subtracted about 2.5 billion euros in taxes since 2002, "for 'essential to the detriment of the Italian tax, but also France and the United Kingdom.'
ALSO ON MSN: Google escapes the tax, "The stab in the back of the French justice"
Fitbit and Google announce $2.1 billion acquisition deal .
Google announced plans on Friday to acquire Fitbit, the world's leading maker of wearable fitness activity trackers. © Myriam B/ShutterstockThe deal, worth about $2.1 billion, is one of Google's largest acquisitions. The wearable market is growing quickly. Although Google makes some hardware, including Pixel phones and Nest devices, it hasn't made much headway into smartwatches and other wearable devices.