UK Upset About Google's Small Tax Payment, Google Says It Did Nothing Wrong
April 23, 2013 2:06 PM
comment(s) - last by
Google only paid £6 million ($7.8 million USD) in UK corporation tax
The United Kingdom isn't happy with Google's
corporate tax record
, but executive chairman Eric Schmidt said that Google is responsible for significant economic growth in the country.
The UK has said that it is "immoral" for multinational companies like Google to pay such low taxes on their earnings in the UK. Leaders in the UK, France and Germany have all called for a way to stop profit shifting by multinationals, which is used to dodge taxes.
The UK is especially concerned with the fact that Google only paid £6 million ($7.8 million USD) in UK corporation tax.
Google executive chairman Eric Schmidt defended his company's tax record, saying that Google has complied with the law and has even helped stimulate growth in the UK.
"Britain has been a very good market for us," said Schmidt. "We empower literally billions of pounds of start-ups through our advertising network and so forth. And we're a key part of the electronic commerce expansion of Britain, which is driving a lot of economic growth for the country."
"I think the most important thing to say about our taxes is that we fully comply with the law and we'll obviously, should the law change, we'll comply with that as well."
Back in January of this year, Google was criticized for skipping out on paying about £1 billion ($1.6 billion USD at the time) in UK taxes. It did this by funneling a large portion of its global revenue through the island of Bermuda.
Google sent £6 billion through Bermuda over the course of 2012, 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.
“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 UK Prime Minister David Cameron in an open letter to the G8.
Schmidt defended Google at that time as well.
“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.”
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.
This article is over a month old, voting and posting comments is disabled
RE: legal loophole
4/23/2013 6:17:55 PM
"Our laws suck! Let's find someone to blame!"
--British lawmakers (really, every lawmaker, ever)
Keep in mind a politicians job is to get re-elected. Raising a big stink over something they have no intention to change
get them closer to their goal (re-election) then getting meaningful things done.
"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer
Google Avoids Paying $1.6 Billion USD In Taxes, UK PM Speaks Out
January 2, 2013, 11:32 AM
Apple Makes $9.5B USD in Britain, Pays Only 0.16% in Taxes; Google Also Targeted
April 10, 2012, 5:46 PM
UK Drivers Must Now Give Their Cell Phones to Police After a Crash
July 29, 2014, 4:37 PM
Ford to Switch 3,300 Employees from BlackBerries to Apple iPhones by Year's End
July 29, 2014, 2:08 PM
Quick Note: Hilton Hotels to Use Smartphones as Room Keys, for Check-In/Check-Out
July 29, 2014, 12:53 PM
Verizon Wireless to Receive Exclusive "HTC One (M8) for Windows" Smartphone
July 29, 2014, 9:13 AM
Report: Microsoft's Chinese Offices Raided
July 28, 2014, 9:16 PM
Cell Phone Unlocking Bill Heads to President Obama's Desk
July 28, 2014, 11:58 AM
Most Popular Articles
Sony's Xperia Z3 Gets Detailed in Leaked Photos
July 25, 2014, 2:30 PM
Report: Apple to Launch 12" Retina MacBook Air, 4K Desktop Product Later this Year
July 24, 2014, 4:33 AM
Pentagon's Priciest Project, F-35, Misses International Debut
July 25, 2014, 10:18 AM
Ford's Extensive Use of Aluminum in '15 F-150 Results in $395 Increase for Base Models
July 28, 2014, 3:02 PM
4.7" Samsung Galaxy Alpha Smartphone Coming Next Month
July 24, 2014, 8:28 AM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information