Google and France have had a tumultuous relationship over the past few years over the company’s tax activities in the country between 2005 and 2008.
The French prosecutor’s office told Reuters that the case against google had been settled, and the charges dropped.
The settlement terms require Google to pay a USD 549 million and USD 510 million in back taxes.
The company reportedly owed USD 1.3 billion in taxes. Shrewd Google however set up a rainy day fund, setting aside some money in anticipation of such a fine.
In recent times France has expressed its plans to begin taxing all tech giants operating within the state. Under this tax arrangement all companies would pay a 3% tax on all the revenue generated within France.
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All firms with more than USD 800 million in global revenues, and USD 30 million in France will be eligible to pay this tax to the state.
