Microsoft may face €600m tax bill

The Centre de Conférences Microsoft in southwest Paris

Amount is second highest corporate tax demand issued in France, according to reports

Tax authorities in France are reportedly seeking €600m in taxes from the French arm of software giant Microsoft.

The company paid €32.2 million in corporate tax in France last year, and billed French customers from its operation in Ireland, where business tax rates are considerably lower, L'Express reports.

It is not the first time that tax officials have targeted internet multinationals over their billing practices. In 2014, it was first reported that French authorities were planning to claim more than €1bn in taxes from Google for similar reasons. An appeal is now pending in that case, after a court ruled in favour of the internet giant in July.

In a statement, Microsoft said that it, "acts in accordance with the laws and regulations in all the countries in which it operates, working in close cooperation with local tax authorities to ensure complete compliance with local laws."

During this year's Presidential election campaign, Emmanuel Macron pledged he would work to ensure internet firms pay appropriate French taxes on the business they conduct in the country.

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