Reuters is reporting that Google could get slapped with a $1.3 billion tax bill in France.
No laughing matter—until you consider that the source is Le Canard Enchaîné, a satirical news weekly, and Google is denying the report.
Google charges French advertisers through an Irish subsidiary, which is legal under European Union trade rules. That helps Google, through a series of legal and financial maneuvers, lower the taxes it pays.
Google is in discussions with French tax authorities, a spokeswoman told Reuters, but hasn't received any kind of bill.
Le Monde and other French publications seem to be taking Le Canard Enchaîné's report seriously, even though it doesn't cite any sources.
Le Canard Enchaîné, whose title translates to "The Chained Duck," does publish some scoops along with its satire. And even if the story turns out to be a joke, it does play into France's seemingly reflexive dislike of Google and the issues around corporate tax avoiders.
Still, this is a bit like taking an Onion headline literally. If Google really is having troubles with the taxman in France, we'd like to hear about it from a better source.
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