France to appeal Google tax ruling

Web_photo_google_02022017

This picture taken on May 13, 2013 in the French western city of Rennes shows a woman choosing Google Search (or Google Web Search) web search engine front page on her tablet. A report by a French expert panel published on May 13, 2013 recommended imposin

This picture taken on May 13, 2013 in the French western city of Rennes shows a woman choosing Google Search (or Google Web Search) web search engine front page on her tablet. A report by a French expert panel published on May 13, 2013 recommended imposin

Web_photo_google_02022017

This picture taken on May 13, 2013 in the French western city of Rennes shows a woman choosing Google Search (or Google Web Search) web search engine front page on her tablet. A report by a French expert panel published on May 13, 2013 recommended imposin

This picture taken on May 13, 2013 in the French western city of Rennes shows a woman choosing Google Search (or Google Web Search) web search engine front page on her tablet. A report by a French expert panel published on May 13, 2013 recommended imposin

PARIS - The French government will appeal a court ruling that US internet giant Google is not liable for 1.12 billion euros ($1.27-billion) in taxes claimed by the state, Budget Minister Gerald Darmanin said Thursday.

"We will appeal this ruling to safeguard the interests of the state," Darmanin told parliament.

The court ruled Wednesday that France could not claim tax on revenues generated by Google in France that were transferred to its Irish subsidiary GIL.

Taxes are far lower in Ireland, a legal loophole prized by many multinationals in Europe.

READ: EU slaps Google with a record 2.4-billion-euro fine

The French claim was the latest in a series against the California-based group, with Britain and Italy agreeing settlements over the Irish tax arrangement.

European action has become increasingly aggressive against US technology giants Amazon, Facebook and Apple as well as Google.

The EU hit Google with a record 2.4 billion euro fine on 27 June for abusing its dominant position in the search engine business and illegally favouring its own shopping service over rivals.

Newly elected French President Emmanuel Macron promised to get tough on US internet giants during his campaign, seeing their low tax rates as a source of resentment about globalisation and unfair on European companies.

The French claim is a fraction of the company's annual profits. In April, Alphabet, Google's parent company, declared a 29 percent jump in profit to $5.4-billion in the first quarter of 2017.