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Favorable Tax Ruling Saves Google More Than $1 Billion

U.S. Internet giant Google on Wednesday won a court challenge against demands by French authorities that it pay 1.1 billion euros ($1.3 billion) in back taxes.

The Paris administrative court ruled that Google Ireland Limited was not subject to corporate and value-added taxes for the period 2005-2010, striking down the tax administration’s demands for back payments.

The ruling in favor of Google, now part of Alphabet, followed a court adviser’s recommendation that Google did not have a “permanent establishment” or sufficient taxable presence to justify the bill. ($1 = 0.8762 euros)