Google avoiding tax in France

21.6.2016

Question for written answer E-004978-16
to the Commission
Rule 130
Dominique Bilde (ENF)

In 2014, Google managed to reduce the amount of tax it paid in France by 35% — it paid just over EUR 5 million in tax on its profits, as compared to EUR 7.7 million in 2013 and EUR 6.5 million in 2012.

Google did this by engaging in tax planning: it bills advertisers from its headquarters in Ireland, and its revenues of EUR 216 million generated in France in 2014 came solely from consultancy services supplied to its parent company. Its final net profit was only EUR 12.2 million.

In 2014, however, the company's global turnover in fact rose by 16%, and in France advertising on search engines generated EUR 1.7 billion, an increase of 4%.

Google is not alone: Apple, Amazon and Facebook engage in similar practices.

What steps will the Commission take to tackle fiscal dumping in the EU? Does it plan to authorise the taxation of revenues in the country of destination, rather than in the country of invoicing?