French tax authorities have raided Google's Paris offices as part of an investigation into tax fraud. Approximately 100 officials entered the US internet giant's headquarters in central Paris early in the morning, according to reports.
Police sources confirmed the raid. A Google spokesperson stated: "We comply with French law and are co-operating fully with the authorities to answer their questions."
Google is accused of owing €1.6bn ($1.8bn; £1.3bn) in unpaid taxes. The company's tax arrangements have come under scrutiny, with critics alleging it uses legal methods to minimise its tax bills. In particular, Google's structure allows it to pay tax in the Republic of Ireland, even when sales appear to relate to other countries such as the UK.
In January, Google struck a deal with UK tax authorities to pay an additional £130m in tax for the period from 2005. However, the UK Public Accounts Committee criticised the settlement as "disproportionately small" given the size of Google's UK business.
Europe's competition authorities are examining whether deals between big companies and national tax authorities amount to illegal state aid. In April, the EU proposed rules requiring large companies to publicly disclose how much tax they pay in each EU country and any activities in tax havens. The rules would apply to multinationals with sales exceeding €750m.
