France raids Google headquarters in Paris as part of a tax evasion inquiry amid public anger. The country is investigating the way multinational companies use their footprints around the world to minimize tax, France, Britain and others have sought ways to make sure Google, Yahoo! and other digital giants, who often have their tax bases in other countries, pay their taxes locally.
Google said it was fully complying with French law, NDTV reports. Investigators from the financial prosecutors office and France’s central office against corruption and tax fraud, accompanied by 25 IT specialists, took part in the raid.
“The investigation aims to verify whether Google Ireland Ltd has a permanent base in France and if, by not declaring parts of its activities carried out in France, it failed its fiscal obligations, including on corporate tax and value added tax,” the prosecutor’s office said in statement.
As France raids Google headquarters in Paris, the search giant has based its regional headquarters in Dublin where corporate tax rates are lower than elsewhere in Europe. Google, now part of Alphabet Inc, has been under pressure in recent years over its practice of channeling most profits from European clients through Ireland to Bermuda, where it pays no tax on them.