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  (Source: timebusinessblog.files.wordpress.com)
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) in taxes 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 then blamed Apple for dodging billions in taxes in a lengthy article last year.

Source: Business Insider



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Google is not a person.
By half_duplex on 1/2/2013 12:40:19 PM , Rating: 2
The British PM says the people pay their fare share, but Google doesn't. But everyone who profits from Google pays their fare share, they are the people.

How exactly does Google not pay "his/her" fair share?

The Brits need to get with the program, lest they remember the last time they tried to force their taxes on American interests.




RE: Google is not a person.
By StevoLincolnite on 1/2/2013 1:06:20 PM , Rating: 2
quote:
The Brits need to get with the program, lest they remember the last time they tried to force their taxes on American interests.


Except it's not American interests.

Google want's to do business in Britain? Then they need to follow the laws, if the laws change and Google is required to pay more tax, then so be it.
Google has the choice of not doing business in Britain after all.


RE: Google is not a person.
By half_duplex on 1/2/2013 1:20:41 PM , Rating: 2
Oh, I agree, I was just making the point that the Brits should consider spending their time thinking about WHY companies like Google opt for Bermuda, instead of on their relentless tax hunt.

Then again, you could argue that Google does its business on the internet, and the people of the UK have to actively choose/seek out Google on a daily basis... but that's a whole other argument. :)


RE: Google is not a person.
By dark matter on 1/3/2013 6:29:37 AM , Rating: 2
Shut up with your petty nationalism.

Google will just has happily not pay any American tax either.

Prick.


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