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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 nolisi on 1/3/2013 2:00:31 PM , Rating: 2
quote:
This is no different from the stink the Dems made over Mitt Romney's finances.


He used a loophole to defer personal taxes on an already lower personal gains tax through the Mormon Church.

Congress changed the law to close the loophole in 1997, but he was grandfathered in.

Part of the problem is the law- you are correct. But when money (and church, in this case) play with politics, people in power can structure laws to their own advantage.

The best example is that we've all been convinced that capital gains should be taxed lower than traditional income because "it encourages investment." And yet we live in a society where we complain that there isn't enough skilled labor for the jobs we insource for, and we outsource what is considered to be unskilled labor. Shouldn't we be encouraging people to work hard just as much, if not moreso than investors? Investors will continue to invest because it's the easiest way to make money work for them.


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