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Latest Google raid is by Spanish tax men

googleA raid Google’s office in Madrid was conducted by tax investigators on Thursday as part of a probe.

Just a month ago, French investigators raided the company’s Paris headquarters, saying it was being investigated for aggravated financial fraud and organised money laundering of Google’s profits.

Thursday's raid was approved by a court in the capital and followed a request by the Spanish tax authorities, according to a brief statement by the Madrid High Court.

A spokeswoman for Google said in a statement the company complied with fiscal legislation in Spain just as it did in all countries where it operated. The company was working with authorities to answer all questions, she added.

An earlier investigation in 2011 by Spanish tax authorities resulted in Google eventually paying an extra €1.9 million on 2007 and 2008 tax returns.

Google and other tech companies such as Apple and Yahoo have come under criticism for generating profits in one country but funnelling them back to its Irish headquarters where the tax regime is lower.

French prosecutors have said they are seeking to establish if the Irish recipient company is deemed as controlling a “permanent establishment” in France.

Google says that its offices dotted around European capitals are just satellites of its international headquarters in Dublin, providing marketing and other back-up services.

In January Google agreed to pay back taxes of £130 million to the British Treasury. The agreement came under fire for being too low and for effectively letting Google continue to route its UK sales through its Irish headquarters.

France is seeking €1.6 billion (£1.2bn) in tax arrears from Google.

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