Google escapes the tax authorities: "The stab in the back of the French justice"

Each morning, Axel de Tarlé decrypts one of the most important economic news of the day.

The economy with Axel de Tarlé. Google escapes a fine of 1.15 billion euros before the French justice.

It's a stab in the back! Excited by Google's tax shenanigans, Bercy had decided to slap his fist on the table by inflicting this tax recovery of more than one billion euros. Except that, the Court of Appeal of Paris who does justice on behalf of all the French says no, everything is normal. Google does not have to pay taxes in France, the French justice gives wrong to Bercy. Yet it is documented, the European Union says it, the giants of the Web pay 2 to 3 times less of taxes than the normal companies.

In the end, there are billions of lost for the state coffers, and a feeling of injustice that makes you want to don a yellow vest!

Why did the French justice cancel this tax adjustment? What is it based on?

There are rules in France: a company pays taxes in France, if it has a "permanent establishment" there. That means, premises, factories with workers who produce, salespeople who sell, accountants who charge ... But at Google, none of this. Engineers are in California, and sales people and accountants in Ireland. That's right, if you advertise on Google, you have to call Ireland and send a check to Ireland. So, no reason to tax Google in France.

All proceeds go to Ireland without paying taxes. And it's the same for all the giants of the web who escape the tax system.

But, then, we must change the tax rules! We can not let the digital giants pay no taxes in France.

Exactly. So how? The idea is the following. Companies should no longer be taxed where they are located, but where they sell, where their customers are. It's a bit like what we did in France, with the tax Gafa Bruno Le Maire, which taxes the turnover, that is to say, which taxes at the root, where the sale is made , closer to the consumer. It sounds simple, but in fact it's more complicated than it seems. The OECD is working on the subject because it is a global problem. All countries are raging against this tax optimization of the digital giants.

Except that if indeed, all over the world we move to a system where we no longer tax where there are factories, but where there are consumers, it means that for example, Vuitton or L'Oreal will not pay more taxes in France, but in China, where are the customers. You see, it's not easy. That's why this file is dragging, for the greater benefit of the giants of the web, who, meanwhile, collect billions by paying a minimum of taxes.