Google: billion dollar tax dodger?
p2pnet news view | Advertising:- Could this be part of the reason the net’s largest online advertising company is so very, very rich?
It didn’t pay any tax on its £1.6 billion advertising revenues in Britain last year, says the Sunday Times, quoted by Times Online.
Spin, spin, spin.
That’s the sound of Gargle lawyers working it out.
“The firm, which has a substantial presence in London, diverted all its advertising earnings from customers in Britain to its Irish subsidiary,” says the article, adding:
“The arrangement allowed Google legally to avoid paying more than £450m in corporation tax to HM Revenue & Customs in 2008, The Sunday Times has established.”
Accounts filed with Companies House in the past week “show Google’s 2008 UK corporation tax bill amounted to just £141,519 — and that was tax on the interest generated by its cash pile in UK bank deposits,” adds Times Online.
But “even the accounts for its Irish operation show a low tax bill,” says the Daily Mail, going on, “While Google is not accused of any wrongdoing, the tax it paid in 2008 was just £6.7million.”
It has spokesman Peter Barron stating: “Google makes a big investment in the UK, with more than 800 employees, and we make a substantial contribution to local and national taxation. But the fact is that our European headquarters is in Dublin. We comply fully with the tax laws in all the countries in which we operate.
“It would be wrong to think of Google’s revenues from UK advertisers as solely the result of operations carried out locally.”
(Cheers, catflap)
First they ignore you, then they laugh at you, then they fight you, then you win ~ Mahatma Gandhi
Times Online – Google pays no tax on £1.6bn in Britain, December 20, 2009
Daily Mail – How Google avoided a British tax bill of £450m, , December 21, 2009
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December 23rd, 2009 at 5:57 pm
Well, from an investor standpoint it is nice to see any clever thinking that boosts revenues/cuts costs as long as it isn’t illegal or damaging. Sounds like Google helps the UK economy by employing 800 Brits so if the law allows them to pay less taxes by putting their Irish branch in charge there… more power to them!
December 23rd, 2009 at 7:20 pm
^ Google fanbois never rest
December 23rd, 2009 at 8:57 pm
Wonder what the politition kick-backs were.
December 24th, 2009 at 12:10 am
that’s a lot of cash
December 24th, 2009 at 2:47 am
“with more than 800 employees, and we make a substantial contribution to local and national taxation.”
Err…you mean your 800 employees make a substantial contribution by paying their fair share of taxes like all citizens.What a shame even though companies in the US are treated like citizens they don’t pay their fair share.
Freaking hipocrites!.
December 25th, 2009 at 5:03 am
RW: To be fair, he has a valid point. As good or evil or whatever as google/microsoft/whoever area, they do have a responsibility to do whatever they can to maximize profits and the return on investors’ money.
December 25th, 2009 at 1:20 pm
“you mean your 800 employees make a substantial contribution by paying their fair share of taxes”
Providing 800 jobs IS a substantial contribution to the local economy. What would happen if all these big companies that people hate so much suddenly disappeared? How many people would suddenly be unemployed?
Advertising isn’t a crime, its a business model. And profits aren’t illegal, yet anyway. And that’s the problem. Way to many people believe that profits are evil and that those seeking profits are evil and abusive. Let all of these evil and abusive companies go out of business and see what’s more important to the people, getting even with these companies or the jobs these companies create.
December 25th, 2009 at 3:22 pm
“you mean your 800 employees make a substantial contribution by paying their fair share of taxes”
When did taxes become a contribution to the economy? Taxes are a burden the economy.
“fanbois never rest”
Anyone that disagrees with your position must be called names and personally attacked? Are those the rules you play by? Do you know who wrote those rules??? I’d be ashamed if I were you.
December 25th, 2009 at 3:27 pm
Taxes are not a contribution. Contributions are voluntary. Taxes are taken by force. If you stop and think about it, taxes and theft have a lot in common.