The Paris administrative court on Tuesday ruled that Google is not liable to pay €1.115 billion (over Rs 8,500 crore) in unpaid taxes as claimed by French authorities, Reuters reported. Google Ireland Limited was accused of illegally routing sales in France through Ireland to avoid paying higher corporate taxes.
The court said Google, now part of Alphabet Inc, cannot be taxed as it did not have a permanent establishment in France. It also said that Google France did not have enough autonomy from its European headquarters, Bloomberg reported.
“Google Ireland Limited isn’t taxable in France over the period 2005 to 2010,” the court ruled.
A spokesperson for Google said it was committed to France and the growth of its digital economy, Financial Times reported. “After a thorough review by the public rapporteur, the French Administrative Court of Paris has confirmed Google abides by French tax law and international standards,” the spokesperson added.