What is Google’s Alleged ‘Artificial Tax Structure’?
There has been a lot of criticism leveled at big multi-national companies operating in Britain in recent months, including Google, Starbucks and Amazon. Critics have argued strongly against the way these and many other corporations are allegedly avoiding little or no corporate tax in Britain. The companies of course have vehemently denied these allegations, and have used the argument that they are merely operating within Britain’s tax rules. The tide appears to be turning against Google though, as a damning report from a U.K. parliamentary committee has today slammed the company threatening to further damage its reputation. The report states that the U.S. tech giant has been aggresively avoiding paying corporate tax in Britain and furthermore the continuation of this practice will damage the company. The comprehensive 64-page report highlighted the practices of Google and other multi-national companies and was conducted by the U.K.’s Public Accounts Committee set up to investigate these tax practices. The “artificial tax structure” described in the report is in regards to the idea that ”to avoid U.K. corporation tax, Google relies on the deeply unconvincing argument that its sales to U.K. clients take place in Ireland, despite clear evidence that the vast majority of sales activity takes place in the U.K.” Furthermore the report added that ”It is quite clear to us that sales to U.K. clients are the primary purpose, responsibility and result of its U.K. operation, and that the processing of sales through Google Ireland has no purpose other than to avoid U.K. corporation tax.”
[button size="small" color="blue" style="none" new_window="true" link="http://www.cnbc.com/id/100812044?__source=yahoo%7Cfinance%7Cheadline%7Cheadline%7Cstory&par=yahoo&doc=100812044%7CGoogle%20Slammed%20for%20Using"]Read the whole story at CNBC[/button]