A French court today ruled that Google is not liable for $1.3 billion in back taxes, passing judgement on a suit filed last year.
The courts stated the company didn’t have a “permanent establishment” in France to justify the large amount of money. The company’s legal revenue-shifting scheme means that, despite employing about 700 people in France, all of its digital business with French customers is handled by a division in Ireland.
The Economy Minister in France at the time the lawsuit was filed was Emmanuel Macron — now the President of France, who has mentioned wanting to hold companies like Google accountable for taxes they accrue in France.
While this is a victory for Google, it’s not the end of their European money troubles. They’re still battling a $2.7 billion fine the European Commission hit them with last month.
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