Google, McDonald’s and Other Multinationals Targeted For Tax Dodging Investigations in France

Michel Sapin, the French Finance Minister has ruled out mulling for any negotiation deal with Google on back taxes following Britain’s prior instance. He has also vowed to go all the way to force multinationals operating in France to comply with existing tax rules.

The French Finance Minister has discussed his government’s tougher stance in combating tax evasion while addressing an interview with Reuters and three other noted European newspapers. He hints for further tax raids while targeting more businesses after Google and McDonald’s.

French Police has raided Google’s Paris headquarters on May 24 as part of the country’s escalated drives in search of instances by multinational business enterprises for tax evasion. Tax investigation officials have raided McDonald’s French headquarters on May 18 while conducting a separate drive.     

Tax authorities have started probing tax dodging events three to four years back and the on going raids have been conducted on the findings of those investigations. Tax authorities have handed over the tax probe data to the judicial authorities to consider for filing criminal charges against the violators, according to a report published in ABC Online.

Sapin hasn’t revealed the exact amount the French government has been seeking in back taxes from Google. However, a Sunday Express source inside the French finance ministry assumes, the claim amount may remain within a range of £1.6 billion. Unlike other multinationals, Google pays a little tax in most European countries using a tax loophole in Dublin. The Alphabet subsidiary reports most of its sales in Ireland to enjoy the benefits of its weaker tax laws.

Google has reached an agreement with the UK government settling claims of back taxes for £130 million. The deal has attracted widespread criticism since the negotiated amount has been too low. Angela Eagle, UK’s shadow business secretary has referred the agreement as a ‘cozy little tax deal’.

Earlier this year, inquiry against McDonald has been initiated following a lawsuit filed by investigating magistrate and politician Eva Jolly, representing an employee committee. The French authorities have placed €300 million tax claim to McDonald’s, informs L'Expansion, a French business magazine during last month. The US burger chain has allegedly funneled profit through its Luxembourg and Switzerland units to dodge taxes.

Judicial source of Sunday Express has confirmed the tax dodging investigation on McDonald’s. French government has reportedly realized €3.3 billion in back taxes and penalties just from five multinationals during 2015, informs the French government during last week.