Thursday 12 September 2019 4:12 pm

Google to pay almost €1bn in wake of French tax probe

Google is set to stump up almost €1bn (£889m) as part of a major tax settlement following a four-year long fraud investigation into the tech giant.

Read more: US states launch antitrust probe into Google

The Silicon Valley firm, which is part of Alphabet, has resolved a dispute with French authorities, which were probing its tax payments, agreeing to pay a €500m settlement and €450m in additional taxes.

With its European headquarters situated in Dublin, the company failed to declare parts of its activities in the country.

The settlement comes amid growing pressure on big US tech giants such as Google and Apple, which report most of their sales in Ireland.

“We have now settled tax and related disputes in France that have persisted for many years,” a Google spokesperson confirmed.

They added: “The settlements comprise a €500m payment that was ordered today by a French court, as well as €465m in additional taxes that we had agreed to pay, and that have been substantially reflected in our prior financial results. We continue to believe that the best way to provide a clear framework for companies that operate around the world is co-ordinated reform of the international tax system.”

France’s financial prosecutor has been probing Google for aggravated tax evasion since 2015.

Google’s share price rose 1.5 per cent during trading.