Osborne’s ‘cosy’ GOOGLE deal slammed as France vows to ‘go all the way’ in back TAX case

FRANCE'S Finance Minister has savaged George Osborne's "cosy" Google tax deal and vowed to "go all the way" to make sure the internet giant pays what it owes.

After dozens of French police raided Google's HQ in Paris, politician Michel Sapin said: "We don't do deals like Britain, we apply the law."

Google is under investigation on suspicion of tax evasion as France attempts to crack-down on big multinational businesses not paying their way.

Sapin would not reveal the exact sum of money the French government are seeking in back taxes, but a source within the French finance ministry said it was in the region of £1.6 billion.

Google, now part of Alphabet Inc, pays little tax in most European countries because it reports almost all sales in Ireland.

This is possible thanks to a loophole in international tax law but it hinges on staff in Dublin concluding all sales contracts.

It agreed in January to pay £130 million pounds in back taxes to Britain, leading to criticism that the sum was too low — Shadow Business Secretary, Angela Eagle, to called it "a cosy little tax deal".

Speaking about the Google raid, Sapin said: ""We'll go all the way. There could be other cases.

"We don't do deals like Britain, we apply the law."

"There won't be negotiations."

Raids this month by police stem from the work started by tax authorities three or four years ago, when they transferred tax data to judicial authorities that look into any possible criminal angle, Sapin said.

Google, McDonald's and other multinational firms such as Starbucks are under increasing pressure in Europe from public opinion and governments angry at the way businesses exploit their presence around the world to minimise the tax they pay.

French authorities reportedly also sent McDonald's a 300 million Euro bill last month.