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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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RE: two faced
By Cheeseavatar on 1/2/2013 4:53:20 PM , Rating: 0
The money that you claim the goverment sucks, provides you with saftey and security.

I suggest you don't forget that


RE: two faced
By wookie1 on 1/2/2013 7:05:12 PM , Rating: 3
It would be wonderful if the scope of government was more limited to that, but in addition to safety and security, they also want to be involved with almost every other aspect of your life. Not to mention taking money from you to dole out to their political friends and prop up crappy, wasteful programs.


RE: two faced
By arazok on 1/3/2013 9:18:34 AM , Rating: 2
Police and the Military are about the only services the government provides that I cannot provide myself. Everything else is simply a monopolized service that costs more and provides less then it would in the free market.

I can assure you, I’ll never forget that.


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