Court rules in favour of Google in 1.1-billion euro French tax bill case

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US internet giant Google on Wednesday won a court challenge against demands by French authorities that it pay 1.1 billion euros ($1.3 billion) in back taxes.

The Paris administrative court ruled that Google Ireland was not subject to corporate and value-added taxes (VAT) for the period 2005-2010, striking down the tax administration’s demands for back payments.

The ruling in favour of Google, now part of Alphabet Inc, followed a court adviser’s recommendation that Google did not have a “permanent establishment” or sufficient taxable presence to justify the bill.

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