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Leonardo

Razzia against Goggle in Paris

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The fun part is that there is way more infos in swedish and german news than french ones :P 

 

 

Long story short, for those who don't want to bother trying to understand European taxe system for enterprises :

 

Google Europe is officially located in Ireland, where the taxes are the lowest for their business.

Enterprise with their siege in Ireland are allowed to have establishments in france without having to pay full taxes if those establishment are "auxiliary", i.e. only things  like marketing, research, data collecting, ... but no actual development / production.

The razzia aimed to determine whether or not Paris' office was actually "auxiliary" enough to be treated as such, or if there was actual development / support / management or other core activities going on here.

 

The debate is tricky legally speaking since googles core activities are actually extremely close to what is stipulated in the law as "auxiliary" (since it's mostly all about marketing and data collecting). Though that's actually all about money, google earn a lot, and states want their shares of the cake  :rolleyes:

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Long story short, we need a unified tax system in europe, imho preferably one, that tells companies to pay their taxes where they earn their money, and prevents shitty tax evasion tactics like the 'double irish arrangement with a Dutch sandwich' (wikipedia tells me the double irish is already officially dead though there's still the Singapore sling and the Bermuda black hole. Check out that last ones' article, it's short and namedrops all the above to tell you why google is at the focus of all this). I expect to see more investigations and raids like that in the future, so our legislation even gets a better grasp of all the tax evasion tactics nowadays employed by those global multicorps. I bet even our politicians no longer fully understand all the details and rather rely on media telling them what kind of loopholes exist. Yes, our german newspapers have been on to this for some time now, how else would I know what a double irish is?

We should replace a good portion of those old farts with pro/power-gamers, that know how to dissect and game a system. Might lead to better results/laws faster.

Wasn't it that the US is also increasingly growing displeased with offshore billions? I can totally see countries taking a global effort (if maybe not unified) to diminish those tax evasions in the next 10 years or so. Less through getting the money currently lost back, but improving legislation to make things fairer in the future.

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