France seeks 150 cr in back taxes from Google

France seeks 1.6 billion euros (about 150 cr) in back taxes from Google, it's ten times the sum the U.S company had to pay to the British government, according to Reuters and the French Press Agency quoting a source close to the government.

In the night, Google's CEO Sundar Pichai was to meet Minister of Economy Emmanuel Macron but the amount was not confirmed on the grounds of tax secrecy. Neither did Google add comment on this information "This does not mean that Google will eventually pay 1.6 billion. There will be review procedures and perhaps, in the end, a negotiation, particularly on penalties", said a source close to the tax administration to the FPA.

In France, 700 people work for Google. In 2014, the giant web company made 12.2 million euros of profits (about 50 cr).

France, Britain and other countries have long complained at the way Google, Yahoo! and other digital giants generate huge profits in their countries but have their tax base in countries such as Ireland, where corporate tax rates are far lower.

But the complaints have made little legal headway because EU tax law protects companies against paying tax in a country where they do not have what is termed a "permanent establishment".