Joel Saget — AFP/Getty Images

Here’s Why France Is Saying ‘Non’ to the Google Tax

Dec 29, 2016

France's Constitutional Council has ruled against a fiscal measure dubbed the "Google tax," which was aimed at making it tougher for multinational companies to minimize their tax payments in France.

The council's ruling on Thursday comes as the government seeks to make France more attractive for foreign businesses after Britain's decision to leave the European Union.

The "Google tax" targeting multinationals that use different countries' tax regimes to reduce tax liabilities had initially been included in France's 2017 budget law, but the government has since said it has reservations about the plans.

Get Data Sheet, Fortune’s technology newsletter.

The council also validated a widening of a planned financial transactions tax, making it applicable to intra-day transactions from 2018, though it could be challenged by the new government and parliament after next year's elections.

It also validated part of the government's plan for French people to be taxed at source from 2018, meaning that their employers would deduct income tax payments from their pay. At present, French workers are responsible for declaring their income and settling their tax bills themselves.

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions