Spain: Tax inspectors raid Google’s Madrid office

Spanish tax inspectors raided the offices of Google in Spain on Thursday, the latest in a series of regulatory worries for the US technology group in Europe.

The raids took place at Google’s Spanish headquarters in central Madrid and in a tech incubator run by the group in the capital. They were authorised by a Madrid court and involved more than 30 officials and investigators.

Google Spain said in a statement: “We comply with Spanish tax laws just as we do in all countries where we operate. We are co-operating with the authorities in Spain in order to answer all their questions, as always.

According to one official briefed on the case, the Spanish probe is similar to the recent string of high-profile tax investigations launched in other European countries, most notably in France and Italy.

They all centre on Google’s policy to channel the bulk of its European earnings through low-tax Ireland, and so limit the group’s fiscal liabilities in other European markets where it does business. Apple has also come under fire from European regulators over its tax arrangement with Ireland, which has long been a popular jurisdiction for US technology groups and multinationals.

Full Content: Financial Times

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