France has asked Microsoft to pay €600 million (US$715 million) in what it claims are back-taxes owed by the American software giant for billing local customers from Ireland.
The French weekly L'Express reported that the billing was for Internet advertising and keywords for Internet searches.
It said that Microsoft had paid corporate taxes of just €32.2 million last year.
Microsoft reacted by saying that it "acts in accordance with the laws and regulations in all the countries in which it operates, working in close co-operation with local tax authorities to ensure complete compliance with local laws".
{loadposition sam08}L'Express said that the French taxation authorities had refused to comment on the claims.
France has also sought back-taxes from Google, in this case a sum of €1.1 billion. In May last year, Google's Paris offices were raided in connection with these allegations.
But a French court later ruled in favour of Google. The tax authority is appealing the ruling.
American multinational technology companies have come under fire in a number of locations over allegedly avoiding the payment of taxes.
Last year, the EU asked Apple to pay 13 billion in back taxes, claiming it had found that a number of deals the company cut to do business in Ireland were illegal.