Google, mcdonald’s and other multinational companies in the crosshairs of France

    The French Finance minister states determined to continue the raids in the offices of companies for tax audits…
    The French Finance minister Michel Σαπέν said that France “will reach to the end,” to ensure that the multinationals operating in the country, pay their taxes, and how they could follow other cases after the raids made on the offices of Google and mcdonald’s.
    Speaking with Reuters and in three european newspapers, mr Σαπέν ruled out reaching an agreement with Google for back taxes, as did Great Britain in January.
    Dozens of French police officers stormed the headquarters of Google in Paris on Tuesday, in the framework of the investigation on suspicion of tax evasion. Investigators had also searched the offices of mcdonald’s in France on 18 May during the course of other tax control.
    “I’ll get to the end. There may be other cases,” said mr. Σαπέν.
    The raids were carried out this month by the police and by researchers based on the work started by the tax authorities from three or four years, when they moved tax information to the judicial authorities, which are investigating every possible aspect”, noted mr. Σαπέν.
    Google, mcdonald’s and other multinationals such as Starbucks are facing increased pressures in Europe from the public and governments react in the way that companies take advantage of their presence around the world to reduce their taxes.
    Google states that comply with the French legislation while the mcdonald’s refused to comment on the investigation, referring to previous statements that it is proud that it is one of the largest taxpayers in France.
    Mr. Σαπέν stated that he is not allowed to report the amounts relating to the case due to the confidentiality of tax affairs. Ministry source had said in February that the French tax authorities asked Google about 1.6 billion euros of back taxes.
    The question of whether the authorities could come to an agreement with the technology giant, mr. Σαπέν noted that “we don’t do agreements like the British, we apply the law.”
    Google agreed in January to pay 130 million. pounds for back taxes to Great Britain, which caused criticism from the opposition that the amount was too low.
    “There will be no negotiations,” said mr. Σαπέν, adding that there is always the possibility of marginal adjustments “but this is not the sense in which we are”.
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