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Re:Spanish authorities raid Google offices over tax by aianus on Thursday June 30, 2016 @12:14PM (#12009557)
Google Search and Adwords are not developed in Spain or France. In effect these subsidiaries are just local distributors for a US product.

If Apple sells an iPhone (developed in the US and built in China) to retailers in Paris, should they have to pay French income tax on the entire profit of the phone? Of course not, that's ridiculous, even if the retailer is an Apple subsidiary.

Re:Spanish authorities raid Google offices over tax by varjag on Thursday June 30, 2016 @01:38PM (#12010270)
> Google Search and Adwords are not developed in Spain or France. In effect these subsidiaries are just local distributors for a US product.

Neither they are developed in Ireland, but they chose to pay their tax there. Perhaps that's significant.