French tax authorities argued that Google owed the taxes because the search giant’s employees who sold AdWords services were based in France, reports the New York Times. However, Google argued that while its employees were based in France, the sales actually occurred via a Google subsidiary in Ireland, where corporate sales taxes just happen to be lower. Today a French court ruled that routing the French-based sales through an Irish-based subsidiary is legal and means that the income is taxable in Ireland and not France.MG
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