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Google is one of the largest companies certainly in the Internet world, if not the world. As a truly international business, surely it makes sense to enjoy as many of the tax planning benefits that it can states Gary McGeown from the Irish Entrepreneur Superconference (CLICK HERE >> http://LifeLastingSuccess.com)
"After finding itself accused of tax avoidance in Turkey Google's affairs are being investigated closer to home, with members of Parliament accusing the company of avoiding corporation tax.
The accusations, publicised in the Times Online via IT Pro, come from the Liberal Democrat deputy leader Vince Cable and Labour MP Austin Mitchell and claim that Google's UK arm is using same dodge as the Turkish arm was fined £29 million for back in November to avoid paying tax in its country of operation.
Specifically, Google operates its European headquarters from Ireland, where it pays between 10 and 25 percent corporation tax - a far cry from the 28 percent to 30 percent it should pay to the UK government were it to fully declare its income, thought to be around £1.6 billion in advertising revenue alone from the UK. Instead, the money is funnelled back to its Irish parent company - with the UK arm declaring a £26 million pre-tax loss based on turnover of just £150 million.
Cable decried the practice to the Times, stating that "avoidance like this is hard to stomach at the best of times, but when the country is in recession and everyone is feeling the pain, it really sticks on the through - it means higher taxes for the rest of us."
The Liberal Democrat deputy leader's comments were echoed by Labour's Mitchell, who accused Google of not just "sucking money out of local newspapers and other people who rely on advertising for a living - [but] it's also draining money out of the public finances."
Responding to Cable's claims that "Google's reputation will be severely damaged if it continues to behave in this way[, as] it is ducking its social responsibility,"
With the UK still ploughing through a stubborn recession, it's hard to see the government ignoring the loss of an estimated £450 million in corporation tax despite Google's claims of innocence - especially following Turkey's whopper fine for substantially the same offence". (Gareth Halfacree)
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