A French court ruled on Wednesday that Google was not liable to pay 1.1 billion euros (US$1.3 billion) in back taxes demanded by the French authorities.
The Paris administrative court ruled that a Google subsidiary, Google Ireland Ltd., was not subject to corporate and value-added taxes for the period 2005-2010, Reuters reports.
The ruling struck down the tax administration’s demands for back payments.
The decision came in the wake of a court adviser’s recommendation that Google did not have a “permanent establishment” or sufficient taxable presence to justify the bill, the report said.
Following the court ruling, the French finance ministry said it is considering an appeal.
Any appeal will have to be lodged within two months, according to the report.
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