Google to pay a fine of USD 1 billion for financial fraud in France -

Paris: The leading IT Company Google will have to pay nearly $ 1 billion fine for the financial fraud committed in France. The settlement comprises a basic fine of $ 550 million along with a tax of $ 500 million. Only two months ago, the French government had decided to tax the enormous earnings of the big companies in the information technology sector. Against this background, the action against Google becomes significant.

Since the last few years, earnings, profits, tax evasion and market monopolies, of the world’s big companies in the information technology sector have consistently been the topics of discussion. The United States and the European Union have adopted an aggressive stance in this matter and have initiated inquiries against these companies at various levels. The Digital Tax bill in France, the discussion about tax on the Big Tech companies in the G7 summit and the investigation started by the US Congress, legal department and the state administrations, confirm the stance.

As per the bill passed in France, companies with a global revenue of 750 million euros and earning more than 25 million Euros in France, will be taxed at 3%. The bill presented in the French parliament claimed that the implementation of the tax would be implemented from the beginning of the current year and will result in a net revenue increase of 500 million Euro to the government.

The inquiry against Google is a part of the investigation started since the implementation of the new tax. Google office was raided in 2016, under the accusation that it had not submitted sufficient information of its transactions in France. The entire matter went to court after that. The French government had taken an adamant stand that Google will have to pay a fine of more than 1.5 billion euros. But thereafter, the French government expressed willingness to reduce the concerned amount.

The company officials informed that there had been a compromise reached regarding all the matters against Google. The French government informed that this action against Google is a lesson for the other Big Tech companies and these companies have already opened a dialogue with the French government to pay the fines. A few days ago, it was also reported that Facebook had expressed willingness to pay fine in a matter in the United States.

There is a possibility of raising the baton of action against the other companies known as Big Tech from the information technology sector, after these actions against Google and Facebook. Therefore, the sources claim that Big Tech companies like Microsoft, Apple and Amazon also may take a significant economic hit shortly.