July 12, 2017 / 9:52 PM / a month ago

Google wins challenge against 1.1 billion-euro French tax bill

PARIS (Reuters) - A French court ruled on Wednesday that Google (GOOGL.O) was not liable to pay 1.1 billion euros (1 billion pounds) in back taxes demanded by the French authorities.

The Paris administrative court ruled that Google Ireland Limited was not subject to corporate and value-added taxes for the period 2005-2010, striking down the tax administration's demands for back payments.

The ruling in favour of Google, now part of Alphabet Inc (GOOGL.O), followed a court adviser's recommendation that Google did not have a "permanent establishment" or sufficient taxable presence to justify the bill.

In a statement, the French finance ministry said it was considering an appeal, which must be lodged within two months.

Reporting by Laurence Frost and Emmanuel Jarry

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