Raid on Google’s Paris office linked to Irish operation

About 100 French investigators raided Google’s Paris headquarters on Tuesday as part of a probe over tax payments, a source close to the finance ministry told Reuters.

Investigators have been probing Google’s offices in central Paris since 5am.

The investigation is linked to Google Ireland's operations in France.

It is part of a probe into tax evasion and money laundering probe, the financial prosecutor’s office said.

“A raid is underway at Google’s,” a source said, confirming a report in French daily Le Parisien.

About 100 investigators are part of the operation, Le Parisien wrote.

France, Britain and other countries have long complained at the way Google, Yahoo! and other digital giants generate profits in their countries but have their tax base in other countries, where corporate tax rates are far lower.

France is seeking some €1.6 billion ($1.79 billion) in back taxes from US Internet giant Google, criticised for its use of aggressive tax optimisation techniques, another finance ministry source had said in February.

Google had in January agreed to pay £130 million in back taxes to Britain, prompting criticism from opposition lawmakers and campaigners.

A Google spokesman said the company fully complies with French law and is cooperating with authorities.

“We are cooperating with the authorities to answer their questions,” said Al Verney, a spokesman for Google in Europe, in an email.

“We comply fully with French law.”

- Reuters, Bloomberg