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Google reaches €1bn tax settlement with France

Google has reached a €1bn settlement with the French government following a four-year fiscal fraud investigation.

The investigation centred on allegations that the US search giant had been routing its European sales through an office in Dublin in order to avoid paying taxes it owed in France.

The French government’s budget minister has said the case could set a legal precedent for the country to pursue settlements with other global companies. It may also pave the way for settlements between Google and other European tax authorities.

The company said in a statement: “We remain convinced that a coordinated reform of the international tax system is the best way to provide a clear framework for companies operating worldwide.”

In July, the UK government revealed it was pressing ahead with plans to introduce a new two per cent tax on tech companies’ revenues despite the threat of US retaliation.