Internet giant Google, a U.S. company, generated sales of €3.7 billion in France in 2020. The France
corporate tax rate is usually between 20% and 24%, but Google paid only 3%. At Press conference,
company officers reported how the company took advantage of tax loopholes and sheltered profits to
avoid paying the full corporate income tax. They justified their practices as ethical, declaring that it
would be verging on illegal to tell shareholders that the company paid more taxes than it should.
Google receives significant benefits from doing business in France, including large sales tax
exemptions and some property tax breaks. France relies on corporate income tax to provide services
to the poor and to help run the agency that regulates corporations.
Is it ethical for Google to avoid paying taxes? Explain why or why not.