Google's Eric Schmidt: UK Should Change Tax System, Google Not to Blame
May 28, 2013 10:05 AM
comment(s) - last by
He said Google pays exactly what it's supposed to pay
The United Kingdom has been looking into the tax-paying practices of large companies, and Google's Eric Schmidt doesn't see the big deal.
Schmidt, Google's executive chairman, defended Google -- which was criticized for profit shifting and dodging larger tax payments -- saying that the UK should change its tax system if it wants large companies to pay more or less each year.
"What we are doing is legal," said Schmidt, referring to Google's UK tax payments. "I'm rather perplexed by this debate, which has been going in the UK for some time, because I view taxes as not optional. I view that you should pay the taxes that are legally required. It's not a debate. You pay the taxes.
"If the British system changes the tax laws, then we will comply. If the taxes go up, we will pay more, if they go down, we will pay less. That is a political decision for the democracy that is the United Kingdom."
Earlier this year, it was reported that
Google avoided paying about $1.6 billion USD
(£1 billion) in UK taxes. Google sent £6 billion through Bermuda over the course of the 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.
David Cameron, the Prime Minister of the UK, said that companies like Google are immorally minimizing tax bills and need to be stopped.
Just last month, the
UK openly stated that it was concerned
with the fact that Google only paid £6 million ($7.8 million USD) in UK corporation tax. Schmidt defended Google at that time as well, saying that Google "empowers literally billions of pounds of start-ups through our advertising network" and is "a key part of the electronic commerce expansion of Britain, which is driving a lot of economic growth for the country."
Google isn't the only large company under the microscope. Apple is also being questioned for profit shifting, where it made an estimated £6B ($9.50B USD) in Britain last year, but
paid only £10M ($15.8M USD) in taxes
. Apple was able to do this because of the British tax code's rule that largely exempts companies based in Ireland from paying British taxes.
Apple CEO Tim Cook offered
tax reform proposals
to U.S. Congress at a Senate hearing last Tuesday in an effort to bring back foreign earnings to the United States. Furthermore, he's suggesting that this money be invested in research and development and creating jobs in the U.S.
This article is over a month old, voting and posting comments is disabled
5/29/2013 9:29:02 AM
I know you're not a lawyer but neither am I. But I do know my rights as a stockholder, different types of stocks, corporate responsibilities, etc... because I put my money on the line in their company.
CEO gets paid a small or 0 salary and a big incentive package. That's their motivation to make the business successful because the value of that package is based on their performance.
The CEO is just like any other employee because he/she is also an employee. They are only prosecuted by the law if they break the law. So a bad performance evaluation is not grounds for prison.
They are not a steward of your money. You pay money to own a share of the company. That share's value is what people are willing to pay and you are willing to sell. No one is holding your money. They are only responsible for making sure that your share is real and accounted for. You also get certain rights depending on what you purchased. Even if you buy the company's bonds, they are only liable to pay you back.
5/29/2013 11:43:24 AM
That's simply not true.
Google "ceo sued by shareholders" or something similar. You'll find endless numbers of cases where such a thing happens without anything *criminal* having happened. Simply the BOD/executives making decisions that the shareholders found to be harmful.
5/29/2013 12:42:32 PM
anyone can sue anyone else or business and even the government for any reason. It doesn't mean anything. You can bring that case to court and waste your time/money but you won't get anywhere.
Yea, I googled it and it says exactly what I said. The only lawsuits that had any actions against the CEOs are the ones that showed they did something ILLEGAL like the HP case.
All the other ones show that they just get tossed aside because neither the court or the corporation cares(eg. Apple cash lawsuit). You can waste money to create a lawsuit that would probably be thrown out after the judge looks at it.
I'm no lawyer, but I do accounting. I've spent years learning this and still in school to get my MBA. I have to study business laws as part of both my degrees.
Almost every CEO out there is under performing right now. They should all be served papers.
"I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" -- Movie Director Michael Bay
Apple's Tim Cook to Talk Profit Shifting, Taxes at U.S. Senate Hearing
May 20, 2013, 1:44 PM
UK Upset About Google's Small Tax Payment, Google Says It Did Nothing Wrong
April 23, 2013, 2:06 PM
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
Apple Adds New Password Protection for Third Party iCloud Apps
September 17, 2014, 8:50 PM
Facebook Tests Moments App, Aims to Keep Your Private Memories Private
September 17, 2014, 5:46 PM
Russian Hackers Compile List of 10+ Million Stolen Gmail, Yandex, Mailru
September 11, 2014, 11:41 AM
House Minority Leader Pelosi Criticizes FCC's "Fast-Lane" Net Neutrality Plan
September 9, 2014, 4:15 PM
Smarter Than Siri? Cortana Adds Game NFL Game Winner Prediction
September 3, 2014, 4:12 PM
Apple Says Nude Celebrity Photo Dump Wasn’t Result of iCloud, Find My iPhone Breach
September 2, 2014, 3:26 PM
Most Popular Articles
HTC Preps Nexus 9 With Nvidia K1 64-Bit "Denver" SoC, Android L Onboard
September 10, 2014, 10:21 PM
Quick Note: Buy an Xbox One Sept 7-13, Get a Free Game
September 4, 2014, 10:42 AM
Apple Announces Its Smartwatch: The $349 Apple Watch
September 9, 2014, 2:09 PM
Dell Announces "World's Thinnest" Tablet: The Venue 8 7000 Series
September 11, 2014, 8:51 AM
T-Mobile Launches Un-carrier 7.0, Beefs Up Wi-Fi Calling
September 11, 2014, 2:56 PM
Latest Blog Posts
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
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
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information