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 ($1.3 billion) 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 favor 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.

($1 = 0.8762 euros)

(Reporting by Laurence Frost and Emmanuel Jarry; Editing by Greg Mahlich; editing by Richard Lough)

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