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Sunday, May 29, 2016

French finance minister rules out Google tax deal, more firms could be targeted

A woman holds her smart phone which displays the Google home page, in this picture illustration taken February 24, 2016. REUTERS/Eric Gaillard/Illustration/File Photo

France will "go the distance" to guarantee that multinationals working on its dirt pay their duties and more cases could trail Google and McDonald's were focused by duty strikes, Finance Minister Michel Sapin said.

Sapin, talking in a meeting with Reuters and three European daily papers, discounted arranging any arrangement with Google on back expenses, as Britain did in January.

Many French police attacked Google's (GOOGL.O) Paris central station on Tuesday, raising an examination on suspicions of assessment avoidance. Examiners looked McDonald's (MCD.N) French central station on May 18 in another duty test.

"We'll go the distance. There could be different cases," Sapin said.

Strikes this month by police and equity examiners expand on the work began by assessment powers three or four years prior, when they exchanged expense information to legal powers that investigate any conceivable criminal point, Sapin said.

Google, McDonald's and other multinational firms, for example, Starbucks are under expanding weight in Europe from popular assessment and governments irate at the way organizations abuse their nearness around the globe to minimize the duty they pay.

Google says it is completely agreeing to French law and McDonald's declined to remark on the hunt, alluding back to past remarks that it is glad to be one of the greatest citizens in France.

Sapin said he couldn't talk about what entireties were in question as a result of the privacy of expense matters.

A source in his service had said in February that French assessment powers were looking for approximately 1.6 billion euros (1 billion pounds) in back charges from Google.

NO DEAL

Inquired as to whether charge powers could hit an arrangement with the tech monster, he said: "We don't do bargains like Britain, we apply the law."

Google concurred in January to pay 130 million pounds ($190 million) in back duties to Britain, provoking feedback from restriction administrators and campaigners that the entirety was too low.

"There won't be arrangements," Sapin said, including that there was dependably the likelihood of some minimal changes "however that is not the rationale we're in."

Google, now some portion of Alphabet Inc, pays little duty in most European nations since it reports all deals in Ireland. This is conceivable on account of an escape clause in global assessment law however it depends on staff in Dublin finishing up all business contracts.

The current week's police assault is a piece of a different legal examination concerning exasperated duty misrepresentation and the sorted out washing of the returns of assessment extortion.

Should it be discovered blameworthy of that, Google confronts either up to 10 million euros ($11 million) in fines or a fine of half of the estimation of the washed sum included.

A preparatory investigation into McDonald's was opened early this year after previous examining officer and government official Eva Joly documented a claim in December for a representative advisory group, a legal source said.

French business magazine L'Expansion reported a month ago that powers had sent McDonald's France a 300 million euro bill for unpaid duties on benefits accepted to have been piped through Luxembourg and Switzerland.

It said charge authorities had denounced the goliath U.S. burger chain of utilizing a Luxembourg-based element, McD Europe Franchising, to move benefits to lower-charge wards by charging the French division unnecessarily for utilization of the organization brand and different administrations.

The legal source affirmed the examination was investigating this.

The legislature said for the current week that it had raked in 3.3 billion euros in back expenses and punishments from only five multinationals in 2015.

"Nothing keeps huge gatherings from coming to us and announcing their assessments," Sapin said.

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