Google accused of tax dodging by UK

Google is reported to have paid $55 million in tax to the UK in the year 2012 for sales worth $5.5 billion to British customers.

Google accused of tax dodging by UK

World Bulletin / News Desk

This revelation comes after it was revealed that Google only paid 2.6% in tax to the US for sales worth $8.1 billion by transferring its profit to subsidiaries in Bermuda, which the company uses as a tax haven.

Google sends almost all profit earned outside of the US to Bermuda as license fees for Google intellectual property.

Google has denied accusations of tax aversion, claiming that it has follow UK rules and the reason for such a low taxation was because the income was not generated by employees in Britain. However the Public Accounts Committee has demonstrated his anger towards Matt Brittin, the head of Google in northern Europe, for advertising job vacancies for salespeople despite rejecting claims that Google conducts sales in Britain.

The PAC also requested that the UK government reform its taxation policy of international companies.

Corporate tax dodging has been a high priority topic at the G20 and G8 summits, and looks set to become even more of a talking point considering the dire economic situation in Europe. 

Last Mod: 30 Eylül 2013, 18:02
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