“Google Ireland Limited (GIL) isn’t taxable in France over the 2005-2010 period,” the Paris Administrative Tribunal said in a press statement on 12 July.
The Irish subsidiary of the US technology firm did not break rules on corporate and VAT taxation because it does not have a “permanent establishment” in France, several news agencies explained.
“Google didn’t illegally dodge French taxes by routing sales in the country out of Ireland, the Paris administrative court decided Wednesday. Judges ruled that Google’s European headquarters in Ireland can’t be taxed as if it also has a permanent base in France, as requested by the nation’s administration.”
“The group employs 700 people in France but advertising contracts for its search engine or video-sharing website YouTube are signed with its Irish subsidiary.”
“The French finance ministry said it was considering an appeal”, according to Reuters. Tax authorities have two months to contest the ruling.