French raid Google over 'aggravated tax fraud' allegations
France's financial prosecutor's office said the raids were carried out with the assistance of the police anti-corruption unit and 25 information technology experts.
The investigation is aimed at finding out whether Google Ireland Ltd. is permanently established in France and if, by not declaring some of its activity on French soil, it has failed to meet its fiscal obligations, in particular with regard to corporation tax and value added tax.
Google Inc. and other American technology companies typically base their European subsidiaries in Ireland or other low-tax jurisdictions such as Luxembourg, allowing them to do business with customers across the continent while minimizing their fiscal obligations — a technique known as profit-shifting.