Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Discover How Google Hit with Large International Tax Bill
Author: Scarinci Hollenbeck, LLC
Date: May 5, 2014
Key Contacts
Back
Despite the affinity that many consumers feel for large tech startups like Google, Apple and Amazon, a number of these companies have a habit of paying low tax rates both domestically and internationally.
Google is only the latest to be hit by a large tax bill in Europe, following a raid of the company’s Paris office by French revenue officers in 2011, according to Forbes. Last week, Google disclosed the existence of the tax assessment, which is reportedly massive, but did not include a Euro figure.
In documents filed with the U.S. Securities and Exchange Commission for the quarterly period ended March 31, 2014, Google noted that it anticipated such an assessment, writing that it believed that adequate provision had been made, and that it was “more likely than not” that its tax position would be sustained, but that it was possible that adjustments to its tax position could occur as a result of any resolution with French authorities.
While no one in the media knows precisely how much Google might be charged, sources in France told LePoint.fr that the figure was between 500 million Euros and 1 billion Euros ($693 million and $1.3 billion). Google pays France a very small percentage of taxes for its operations there by routing almost all of its revenue through the Netherlands, reporting it in Ireland and sending it on to Bermuda, where subsidiary Google Ireland Holdings is located.
According to estimates by various industry analysts cited by the news source, Google made a France turnover of between 1.25 billion Euros and 1.4 billion Euros in 2011, mainly from its advertising business. In 2012, Google’s turnover in the country was reported at 192.9 million Euros with a net profit of 8.3 million Euros. The company tated that the income taxes paid for 2012 amounted to 6.5 million Euros.
- Practices: Tax and Trusts & Estates, Corporate Transactions & Business, International Law & Trade
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
SPACs Are Back, What You Need to Know
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.