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Reports say about 100 tax officials entered Google's offices in central Paris early in the morning.
Police sources confirmed the raid, but Google itself has so far made no comment. Google's Paris HQ raided in tax probe [bbc.co.uk]
Lets see how they explain tax avoidance using the black box "Algorithm" excuse.I think that Amit Singhal had a post about why the European Commission was so wrong about taking action against Google a year or so ago and the post used some rather dodgy "statistics". To use a movie expression: Google has form. Don't be surprised to see a blizzard of bullsh*t from Google's friends in he media if the French manage to get more money out of Google than the UK.
A hundred tax officials raiding Google's offices? Really?
The raid smacks of political theatre.Well that clears it up. Just a bit of entertainment, is it? The French can close the investigation becase some random poster on a forum has said that everything is fine with Google.
The political term is "optics."If only they had you to advise them? Google had to pay a US$500 million fine for drug dealing. Google had to pay Sterling £130 million to the UK tax authorities in a settlement for having underpaid taxes. Google is about to be hit with a fine of 3,600 million Euro by the European Commission. The British are probably going to reexamine the £130 million settlement in light of the French action. The French investigation into Google's possible tax fraud has been ongoing for almost a year and this raid is part of it. This isn't just "optics". A raid of this magnitude is out of the ordinary because of the number of people involved and specifically the number of IT specialists involved. Now you and other Google supporters might want to dismiss this as being just "optics" but the reality is that Google's tax avoidance has made it the subject of investigation by tax authorities in some of the jurisdictions in which it operates. It has been reducing its corporation tax bill by offshoring its revenue so that it avoids paying the normal corporation tax rates in many of the countries in which it operates. (This is a central element of the French investigation.) What you think and claim about the French investigation of Google is irrelevant. The only thing that matters is what happens next. The French may get enough evidence from this raid and the year long investigation to make Google pay more in taxes than it has paid already or it may not. A more clueful political observation would be that Google has been refusing to settle and now this investigation has moved to a different level.