It seems like Google, Inc is often involved in some sort of issue with the European Union (EU) or the countries within the EU and this right now is no different. The currently issue plaguing Google seems to be taxes within the region of Europe.

Google seems to have many countries asking for back taxes, including the United Kingdom (UK) and Italy. In an effort to work with the countries Google and UK’s tax authority (HMRC) recently entered into a deal regarding the taxes Google pays. As a part of the deal Google agrees to pay £130 million in the back taxes.

Within the UK, some opponents are describing this deal as a victory for both parties and EU as a whole, while opponents are describing this deal as “lenient” and “trivial” without any real effect for the future of the tax issues involving Google and other international companies. Some are expecting other countries, such as France, may be able to get more out of Google that the current UK deal is providing for the UK.

The EU is currently reviewing complaint concerning Google, Inc. There will be a hearing regarding the internet company’s deal with HMRC on February 11, 2016. Both Google and HMRC have insisted that this deal will hold up to scrutiny. They both claim that it is completely legal. Only time will tell if they are correct.

Most of the speculation appears to be premature, as not many details of the deal are known to the EU or other organizations. Any scrutiny into this deal may lead to harsher tax laws from corporations working within the EU for the future. For example, many are using this deal to help prevent future tax avoidance within Europe by artificially moving their profits to prevent taxes in particular countries.

— Cassidi Hammock


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