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skeechan
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reply to cdru

Re: That is their prerogative ...

No, what they do is not have a physical presence in the country and refuse to pay any taxes in France. French companies would still buy their services.


cdru
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said by skeechan:

No, what they do is not have a physical presence in the country and refuse to pay any taxes in France. French companies would still buy their services.

Except in many cases, I'm sure that Google would find it even harder to conduct significant business in many countries without a physical presence there. Don't forget that Google is much more than just a search engine.

Also, the EU has been trying recently to close up international tax shelters due to favorable taxing laws. It also wouldn't surprise me that if Google did try to just "leave the country" but still try to operate services within the country that corporate life could be made quite difficult by the government of France (or any other country for that matter).


skeechan
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There is little in the world more portable that money. Google would have little problem conducting their French business from another EU country with a much lower tax rate such as Liechtenstein.


cdru
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said by skeechan:

There is little in the world more portable that money. Google would have little problem conducting their French business from another EU country with a much lower tax rate such as Liechtenstein.

If they would have no problem doing it, and it would be cheaper to do so, why aren't they doing it now already? There's a reason why Google has physical offices in nearly every EU country.

Google is not going to leave France. France has too large of a population and too large of an economy to just try and find loopholes around their tax code.


skeechan
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The taxes hadn't gone up. When it goes up, they'll move money as they already do.

Population is irrelevant. They are not a grocery store; no retail operations. They have no reason to stay in France if taxes go up. They can conduct business in France without being in France.

You think Google can't "outsource"? Of course they can and will. They aren't going to stand by and watch a French tax smash and grab. They will make them an example so that other EU nations don't try and follow suit.