France is determined to “go all the way” to see that multinational corporations in France pay their taxes.
Finance minister Michel Sapin indicated that other cases could follow in the wake of investigations and raids on Google and McDonald’s.
Sapin also ruled out negotiating a deal with Google on back taxes, as the UK did in January. “We don’t do deals like Britain, we apply the law.”
“We’ll go all the way. There could be other cases,” Sapin said.
In May the French headquarters of both Google and McDonald’s were raided by officials.
The Google search resulted from work which the tax authorities began three to four years ago, when they transferred tax data to the judicial authorities who look into possible crimes, Sapin said.
He also said that tax affairs in France are confidential so he could not discuss specific levies. But in February a ministry source indicated that something in the region of €1.6 billion could be due in back taxes from Google
The tech giant agreed to pay the UK £130 million in back taxes. Many complained that this sum was far too low.
Google pays little tax in many part of Europe as it reports its sales in Ireland, in line with current international tax laws.
Reports in the French media last month said that McDonald’s in France were sent a demand for €300 million in unpaid tax on profits made in France but funnelled through Switzerland and McD Europe Franchising in Luxembourg.
