Featured Articles

Apple announces its Apple Watch

Apple announces its Apple Watch

Apple has finally unveiled its eagerly awaited smartwatch and surprisingly it has dropped the "i" from the brand, calling it simply…

More...
Skylake 14nm announced

Skylake 14nm announced

Kirk B. Skaugen, Senior Vice President General Manager, PC Client Group has showcased Skylake, Intel’s second generation 14nm architecture.

More...
Apple officially announces 4.7-inch iPhone 6 and 5.5-inch iPhone 6 Plus

Apple officially announces 4.7-inch iPhone 6 and 5.5-inch iPhone 6 Plus

The day has finally come and it appears that most rumors were actually spot on as Apple has now officially unveiled…

More...
CEO: Intel on target for 40m tablets

CEO: Intel on target for 40m tablets

Intel CEO Brian Krzanich just kicked off the IDF 2014 keynote and it started with a phone avatar, some Katy Perry…

More...
Aerocool Dead Silence reviewed

Aerocool Dead Silence reviewed

Aerocool is well known for its gamer cases with aggressive styling. However, the Dead Silence chassis offers consumers a new choice,…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Tuesday, 01 October 2013 09:10

Google faces tax reckoning in the UK

Written by Nick Farrell

Paid $55 million on sales of $4.9 billion

Google seems set to have killed any golden goose it had in the UK by coming up with such a ridiculously low tax bill, even the ruling Tory party has to do something about. Google, which has been grilled twice in the past year by a UK parliamentary committee over its tax practices, had a UK tax bill of $55 million in 2012, in sales of $4.9 billion to British customers.

The Internet search giant only paid a tax rate of 2.6 percent on $8.1 billion in non-U.S. income in 2012, because it channelled almost all of its overseas profits to a subsidiary in Bermuda which levies no corporate income tax. Google claims to follows all they tax rules in every country where it operates. It says that it does not pay much tax in Britain because its profits are not generated by its UK employees.

Google UK pay little tax because they are designated as providers of marketing services to Google Ireland., the Dublin-based subsidiary whose name appears on invoices to most non-U.S. clients. The parliamentary Public Accounts Committee (PAC) heard how Google advertised dozens of jobs for salespeople, despite Brittin telling the committee last year that the company does not pay tax on its UK revenues because it does not conduct sales from British territory.

A PAC report later accused of Google of using "contrived" mechanisms to avoid tax and called on the government to change the rules on taxing multinational companies.

Nick Farrell

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments