Google Avoids Paying $1.6 Billion USD In Taxes, UK PM Speaks Out
January 2, 2013 11:32 AM
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David Cameron, the Prime Minister of the UK, said that companies like Google are immorally minimizing tax bills
Google has managed to skip paying about $1.6 billion USD (£1 billion)
by way of the island Bermuda -- and the Prime Minister of the United Kingdom isn't happy.
Google sent £6 billion through Bermuda over the course of last year, which halved its 2011 tax bill. In fact, Google funneled 80 percent of its global revenue through the island and ended up paying about £1 billion less to the government.
Google's Executive Chairman Eric Schmidt said this "is called capitalism."
“We pay lots of taxes; we pay them in the legally prescribed ways,” said Schmidt. “I am very proud of the structure that we set up. We did it based on the incentives that the governments offered us to operate.”
David Cameron, the Prime Minister of the UK, said that companies like Google are immorally minimizing tax bills and need to be stopped. He even wrote a letter to fellow leaders of the G8 requesting a global crackdown on tax avoidance for large companies such as Google and Starbucks.
“I do believe we all have a common interest in being able to tell our taxpayers who work hard and pay their fair share of taxes that we will make sure others do the same,” wrote Cameron in an open letter to the G8.
Google's UK Head Matt Brittin said politicians are the ones who set tax rates, and that Google is playing by their rules.
Google funneled £2.6 billion of British revenue through Bermuda, which cut its UK tax bill by £200 million.
In April of last year, it was reported that
Apple made $9.5 billion USD
in Britain for 2011, but only paid 0.16 percent in taxes. Amazon was also targeted for its
headquarters in the tiny European Union nation of Luxembourg and Google's placement in
Ireland with subsidiaries in the Caribbean and Luxembourg for more tax dodging gains.
The New York Times
blamed Apple for dodging billions in taxes
in a lengthy article last year.
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Who sets the tax code/laws?
1/2/2013 12:25:47 PM
If it's true that the governments/politicians set the tax codes/laws for businesses, then why are they complaining about companies that take advantage of said codes/laws? May I suggest that many politicians want to
against big business to boost their popularity with the people, but when it comes time to change the codes/laws for the better they don't really do anything. Why don't they do anything? May I also suggest that some really don't care about the people, but do care about the money and power involved for themselves?
Simple solution: Put a hard limit on the amount of time any voted-in representative can serve. This will cut into much of the corruption we constantly see and help change the motivations from constant campaigning for reelection to actual work till the end of their term.
RE: Who sets the tax code/laws?
1/2/2013 4:07:13 PM
They need to act like they are against business to appease the public, but on some level, they know if they change the laws, that some of these companies will completely move to other countries, putting more of their people out of jobs, dropping economies more, and causing more issues that the amount that is not paid at this point.
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
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