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French Tax Authorities Raid Google’s Paris Offices Due to Allegations of Fraud

Prosecutors said in a statement that the raid, which also involved 25 computer experts, is part of an investigation launched in June 2015 into possible tax evasion and money laundering.

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French authorities raided the Paris offices of Google Ireland, an global division of the USA founded internet giant.

It is reported that 100 investigators entered the United States internet giant’s office in a dawn raid as Google stands accused of “aggravated tax fraud”.

“We comply with French law and are cooperating fully with the authorities to answer their questions”, the firm said in a statement.

The raid in France is the latest regulatory problem confronting Google, which is now operating as a subsidiary of Alphabet Inc.

European regulators have increasingly pressured firms to pay taxes in the jurisdictions they do business in.

Facing public anger at the way multinational companies use their footprints around the world to minimise tax, France, Britain and others have sought ways to make sure Google, Yahoo! and other digital giants, who often have their tax bases in other countries, pay their taxes locally.

The French government hasn’t disclosed how much it believes Google might owe in back taxes, but it made an elaborate show of force in Tuesday’s raid.

In a major escalation of the west European nation’s long running enquiry into the U.S. Internet giant’s tax affairs, magistrates revealed today that the company is suspected of evading tax payments by failing to declare the entire extent of its activities in France. Yesterday, the French competition authority also initiated a probe into the misuse of Internet users’ data in the online ad sector, where the company is one of the key players.

Earlier this year, rumors were going around that the French government wanted Google to pay more than a billion euros in back taxes.

Google’s tax dealings have been investigated across Europe. Last December Apple, reached a deal with Italy’s fiscal agency to pay 6.6 million, following accusations that the company was underpaying its taxes.

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The probe reflects European indignation looming over Google and other USA tech companies as they amass huge amounts of cash while cutting their tax bills through complex maneuvers that shield their profits.

Members of the media stand outside the entrance of Googles Paris headquarters as French investigators conduct a raid