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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) 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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RE: two faced
By half_duplex on 1/2/2013 1:51:44 PM , Rating: 2
People (human beings) who profit from Google can't do that either.

Google is not a person, enjoys no mansions or super charged Porsches.

The more money Google makes, the more money its share holders and employees make, the more income tax revenue the government can impose.

Why don't people understand this?

RE: two faced
By Rukkian on 1/2/2013 3:58:49 PM , Rating: 2
While I personally think there should be no corporate tax rate, I do not agree completely with what you mention, as that would be investment income that is taxed much, much lower than wages (ex: Mitt Romney).

My personal opinion is to get rid of corporate taxes, and just have 1 flat tax with no deductions on all income from any source where you pay no taxes for the first say 30k. Stop all entitlements, stop all deductions, shelters, etc.

Wont ever happen because too many people loose their power in Washington and bribes (I mean campaign contributions) would dry up as it would not be neccessary from corps.

RE: two faced
By half_duplex on 1/2/2013 5:16:17 PM , Rating: 2
But slow down and think about what you are suggesting.

-Investment income is taxed at a lower rate because it requires investors assume a risk.
-At some point, money invested was once income, and taxed as income.

If there's no difference between earned and investment income, there'd be no incentive to take on the risk of investment. Without investment, you can kiss the whole thing goodbye.

RE: two faced
By BZDTemp on 1/3/2013 3:57:12 AM , Rating: 2
If there's no difference between earned and investment income, there'd be no incentive to take on the risk of investment.

Wrong. There may be less incentive if the tax is higher but as long as the tax isn't 100% then there is still an incentive.

RE: two faced
By Rukkian on 1/3/2013 3:51:52 PM , Rating: 2
You really think nobody would invest if they actually had to pay taxes?

You opposition is indicative of the attitudes of a great majority in this country. Lets make everybody else pay their "fair" share, but what is fair only means what helps you and hurts others.

We need to change things across the board. Make all income equal, does not matter where it comes from. Lets get everybody paying the same, no more loopholes, no more entitlements, no need for much IRS, as the tax code would be simple.

"Intel is investing heavily (think gazillions of dollars and bazillions of engineering man hours) in resources to create an Intel host controllers spec in order to speed time to market of the USB 3.0 technology." -- Intel blogger Nick Knupffer

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