France vs Google, September 2019, Court approval of CJIP Agreement – Google agrees to pay EUR 1 billion in fines and taxes to end Supreme Court Case

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The district court of Paris has approved a  “convention judiciaire d’intérêt public” negotiated between the French state and Google for an amount of € 500 million plus another agreement with the French tax authorities which amounts to 465 million euros.

The agreement puts an end to the French lawsuits against Google for aggressive tax evasion, and litigation with the tax administration relating to adjustments for the periods going from 2005 to 2018.

The CJIP “convention judiciaire d’intérêt public“, was established by Article 22 of Law No. 2016-1691 of 9 December 2016 in France on transparency and fight against corruption. By Law No. 2018-898 of October 23, 2018 the law was extended to cover cases for tax evasion. According to the CJIP legal actions can be ended in return for the payment of a fine.

The dispute concerned the existence of a permanent establishment of Google Ireland in France. In Googles European headquarters in Ireland the corporate tax rate is (12.5%). However, according to the French tax authorities most of the profits related to the French marked was attributable to a Permanent establishment in France.

The case was first brought before the Administrative Court in Paris (July 2017) and then the Paris Administrative Court of Appeal (April 2019). Both courts found in favor of Google and canceled the tax adjustments.

The state then brought the case before the French Supreme Court and now – to end the proceedings – Google has entered into the CJIP agreement. According to the agreement Google will not have to admit to tax avoidance or evasion.


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Google France


The full CJIP agreement between France and Google have been published on the website of the French Agency for Anti-corruption.

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Google 190903_CJIP


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