EuroTechView

In France, the debate is raging on tax in general with some focus on the digital economy. Many people, including some in the parliament and government seem to have recently discovered the magnitude of tax optimization that large companies do. If all companies are very adept at optimizing their taxes, the US giants of the technology world have demonstrated an amazing ability to move their taxes as close to zero as possible. Google and Microsoft are two interesting examples. Microsoft has been around since the mid-80s and has been using quite efficiently all classic strategies, including a heavy reliance on Ireland for all their European operations. Google is using some of the same mechanism with their core operations in Ireland.

2011 – in M€

Microsoft

Google

Real Revenue (estimated)

1.300

1.300

Revenue (recognized in France)

493

138

Net Income

36

4

Corporate Tax estimated (@33%)

12

1,5

Tax Avoided

266

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