Posted Jan 25, 2023, 5:55 PMUpdated Jan 25, 2023, 6:00 PM
With finance, the tax administration and Booking.com have buried the hatchet, after years of legal proceedings. The hotel reservations platform indicated that it had agreed to pay 153 million euros to settle all of its disputes with the French authorities, confirming information from the site “The Informed”.
“We maintain that we are and have always been in good standing with French taxation, and we are satisfied to confirm that we have reached an amicable agreement with the French tax authorities relating to a specific observation period from 2006 to 2018,” said the company. The two parties will still have to find an agreement for the period 2019-2021.
Part of the French income declared in the Netherlands
Booking.com was notably criticized for having declared in the Netherlands – which has more favorable taxation – a large part of its turnover made in France, which enabled it to reduce its tax, a technique often criticized for international digital groups. The company had long disputed, arguing that all reservations made in France via its subsidiary Booking BV were managed by its employees in the Netherlands, where its European headquarters are located. And that its French subsidiary was only intended to manage the call center in Tourcoing (North), which provides after-sales service for reservations.
While the French tax authorities initially claimed several hundred million euros, including 356 million for the period 2003-2012, or even 70 million for 2013, the agreement reached puts an end to a legal battle. “At Booking.com, we strive to ensure that our activity is in accordance with the law of all the countries in which we operate”, justifies the company. While the tax administration protects itself against a possible unfavorable outcome.
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