Critics hit out at Google’s ‘paltry’ £36m UK tax bill after US web search giant rakes in £1billion in revenues : Daily Mail.

 

  • The search engine giant confirmed its tax payment for the year to June 2016 
  • The contribution is higher than it has paid in the past but they were criticised  
  • It is though to make around a tenth of its £71.2billion worldwide profit in the UK

 

Google paid £36.4million in UK corporation tax last year – despite making a turnover of £1billion.

The contribution is higher than it has paid in the past but critics still called the amount ‘paltry’.

Experts said the US web search giant would have owed around ten times that figure if it were taxed on its total profits from sales in Britain.

Google, which has office at London's Kings Cross, paid £36.4 million in UK corporation tax for the year to June 30, 2016, the company has confirmed

Google, which has office at London’s Kings Cross, paid £36.4 million in UK corporation tax for the year to June 30, 2016, the company has confirmed

Google’s accounts say it made £148.8million of pre-tax profits in the UK following revenues of £1billion.

But the technology firm is thought to make around a tenth of its £71.2billion worldwide revenues over here – suggesting that Google actually gets around £7billion from UK operations.

The discrepancy is down to the fact that business from UK customers who buy advertising space is channelled through Ireland, where Google has its European headquarters.

John Cullinane, of the Chartered Institute of Taxation, said: ‘The amount of corporation tax Google pays in the UK is not based on the amount of profit Google makes from its sales to UK customers.

‘If it were, Google would be paying about ten times as much – probably about £300million.’ He said he had no problem with the arrangement, adding: ‘There are big swings and roundabouts. That’s just how things work.’

But others were furious at Google’s contribution to Britain’s coffers. Liberal Democrat Treasury spokesman Susan Kramer said: ‘It is appalling that Google are still getting away with paying such a paltry amount of their total revenue back in taxes.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s