Google declined by 35% taxes paid in France – Le Figaro

It paid just over € 5 million under income tax in 2014. While its global sales jumped 16%, revenues reported by its French subsidiary fell by 3%.

In the new alphabet of Google, there is also the “o” as tax optimization. Last year, the US conglomerate Web has managed to reduce a 35% tax which it does in France, according to its financial statements, consulted by Le Figaro. He paid just over € 5 million under income taxes in 2014, against € 7.7 million a year earlier, and 6.5 million in 2012. A tiny sum , in view of its activity in the country, and 14.4 billion dollars annual net profit generated in the world.

The tax optimization mechanism used by Google is well documented. The search engine derives substantially all of its revenues from online advertising. It charges the French advertisers since its automated platform AdWords, Ireland. The revenue reported in France are reduced to advisory services provided to its parent, or € 216 million in 2014. This amount covers almost the charges, the Google subsidiary pays (salaries, social charges, etc.). Ultimately, the result before tax is only 17.2 million. For net profit just afloat, 12.2 million.

If Google has paid less tax last year in France, it is because the share of activity he chooses to declare France fell by 3% to $ 225 million. This performance is not commensurate with the increase of 16% of its worldwide turnover in 2014. Or even results of the French Internet advertising market. In France, advertising in search engines by the US trustee, reached 1.7 billion euros in 2014 (+ 4%), according to the Research Institute and advertising research. This data is used to estimate the actual turnover of Google, which escapes the tax calculation.

Referred for years about it, Google says always follow the accounting rules in the countries where it operates, and recalls that it pays direct taxes (VAT) and payroll taxes. Its advertising campaign “Engine French successes,” which began in the spring, also intends to stress its indirect participation in the economy. Through various initiatives, Google is involved in the digitization of companies in France, and claims to have a positive impact on their business, and therefore on growth.

Google is not alone in engaging in these accounting tricks, inevitable among Internet groups and number of multinationals. Facebook has thus paid 320,000 euros as corporate taxes in France last year, indicated BFMTV last week. But the search engine has become a symbol tax optimization practices “GAFA” (Google, Apple, Facebook, Amazon), the Internet giants. Several attempts to set up a “Google tax” have emerged, to report to the company’s actual activity in the country. Still without success. The French tax authorities is also interested in its affairs. Last year, its parent company has spent a provision of more than half a billion dollars, in the event of a tax adjustment. Google still disputes this procedure.