Google Pays No Tax On £1.6bn Earning In UKAdded: Tuesday, December 22nd, 2009
Category: Recent Headlines Involving File Sharing > Ridiculous Criminal Trials
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Internet search giant Google has not paid any tax on it's £1.6 billion advertising revenues in Britain last year, a media reporter says. “Google, the Internet giant whose informal corporate motto is ‘don’t be evil’, did not pay any tax on its £1.6 billion advertising revenues in Britain last year,” the Sunday Times Reported.
Google legally avoided paying more than £450 million in corporation tax to HM Revenue & Customs in 2008, as it diverted all its advertising earnings from customers in Britain to its Irish subsidiary, the newspaper said.
Citing accounts filed with the Companies House in the past week, the daily said, “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.”
Vince Cable, the deputy leader of the Liberal Democrats, has urged Google to “pay its share” of tax. “Google’s reputation will be severely damaged if it continues to behave in this way. It is ducking its social responsibility,” Cable said.
Cable added 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 in the throat it means higher taxes for the rest of us”. Google said its structure complies with UK tax rules and that it makes a substantial contribution to tax receipts wherever it operates.
December 22nd, 2009Posted by: Date:
Tuesday, December 22nd, 2009
|One cannot really fault Google for this type of behavior. Its indicative of a much larger problem: capitalism. Again and again, we find that whether companies obey the law or not, is a question of whether its cost-effective. If the chances of being caught and the penalties are less then it costs to comply with the law, companies will think of it as a business decision. And in actuality they are forced-by their legal makeup- to take the most cost effective route, whether legal or not. Profit is the bottom line, not ethics.|
|posted by (2009-12-22 22:41:02)|
|The VAT was supposed to take care of taxes that many major corporations can avoid by incorporating their main trading entity in another location. But as what happens in most cases, these major corporations have highly intelligent accountants et al working for them that find ways to circumvent their dues. Which is fine as long as the company is using moneies they would have otherwised paid in taxes in other philanthropic ways, ie they control how the money is used and not the government who don't know how to use money wisely and effectively at the best of times. |
In Australia we had Kerry Packer. He freely admitted that he was constantly devising ways to give the Australian government less and less taxes. As he said at a Senate Hearing - "the government wastes more money than even he has earned in his life time" And you would have to plain stupid to pay more tax than you have to". But Kerry Packer was a HHHHUUUUGGGGEEEE philanthrapist.
I lived in a seaside community where our life guards had a defib machine because of Kerry Packer. ALL Ambulances in NSW were fitted with defibs because Kerry Packer bought them. He funded so much money into hospitals for their organ transplantation work. So whilst Packer did not pay much in tax - he gave back more than he would have paid in tax to the community in the form of donations.
So now the question has to be asked just what is Google doing with their 450 million pounds? How are they benefitting the community that benefitted them? In other words what are they giving back? If that question is not answered to your own personal satisfaction then maybe you need to use another search engine. Vote with your mouse people! We have the power to do that. Then everytime you do not use Google send them a message. Just write a little ditty and copy and paste it ad infinitem. Send it to your friends and get them to do the same.
See I believe there is nothing wrong with capitalism. I love capitalism. If I have the wherewithall to develop a comfortable space for myself, then thats my good work. A lot of sacrifice usual comes with that. No holidays for years, getting by on less and less etc. But as Oprah says "If you are a nice person and come into money you will be a nice person with money who can do even greater things. But if you are a horrible person that comes into money, you usually turn into an asshole". Money has no power of its own, the power comes from the user. Therefore money can be good or bad. So once again I come back to the question of just what is Google doing with the 450 million pounds? And are Google good or bad? Or some might ask the question "Are they assholes?"
|that 450 million would pay for a 500 bed hospital, or 6 new high schools, or cancer treatment for 25,000 people, thanks GOOGLE, you have just robbed the UK taxpayer, Well Done.|
Kazzgirl is right, Vote with your mouse.....dont use google, plenty of search engines have caught up with their tech, so use another one.
|posted by (2009-12-22 23:36:31)|
|This makes me sick, just more corporate scum pissing in our faces as usual.|
|posted by (2009-12-23 01:25:56)|
|I like Blasphemer's response|
|posted by (2009-12-23 05:12:08)|
|The almighty dollar hard at work in the big corporate heavy weights pockets. Its amazing how their pants don't fall down.As KazzGirl stated that some large companies do give back to the community, I don't know of or have heard of any donations that google have made to the peoples of the UK. ( not that i live there )|
Maybe they can enlighten us to their spending's in the UK.
But as SnakeyB stated the taxation will end up in the government coffers anyway and they will do what they want to with the moneys in that big sack. Who really knows where the government will spend this money even if it had it.
Which is the greater evil.
Its a tie i think.
|I agree they should pay there share, although GOOGLE shouldn't be compared to the software giants and other corporations, as a majority of the public-services are FREE-OF-CHARGE. gaining no revenue from most of the General-public, thus, meaning the majority of there profits are made from Advertisement services, corporate Services, and Investments.|
Yes, they should have to pay there share, but, if it means being forced to charge for services because of financial difficulty's DIRECTLY related to it. i feel that the means of amount, should be altered to assist the company's bottom-line, as its much less of a threat Vs. a lot of larger corporations.
|posted by (2009-12-23 06:44:31)|
|OK thanks for the read! but all I have to say is line up all the studied people and shoot them....|
|posted by |
SaM (2009-12-23 13:31:20)
|and they also said they r shutting down some office for around a week to cut expenses and costs..not sure about details but duh...cutting expenses and costs and not paying taxes!!!!!!what next ..|
|Its Funny that a Company that big can getaway with that but if a Middle Class Person Dont pay there tax there Fined or even Sent to jail i think the chairman Of Google should be jailed . Nice Read Emu m8 thanks =)|
|posted by (2009-12-23 14:45:07)|
|If yall want something to be pisst about and get involved in something you can do something about, bitch about obama ;) and please help get him the hell out of our white house!!|
|posted by (2009-12-23 17:26:18)|
|Honestly ... i believe that Google is doing the same|
thing as we all - trying to avoid paying taxes.
I believe everyone is trying to pay lowest possible tax,
we're using benefits etc. if we can apply for them.
Google's doing the same thing - only difference is
- the're successful in doing that :)
That's because they have a bunch of good accountants
and lawyers and all kind of staff needed.
But You should remember that GOOGLE and YOUTUBE are FREE
- it's probably the most popular source of information
for a lot of people around the globe and it's FREE.
Havin' said that - I have to admit
- 450MLN duck - damn they're good.
|posted by (2009-12-23 17:45:59)|
|Nothing is free....your paying for it somehow in some way.....LOL|
|posted by (2009-12-23 18:09:49)|
|i say good luck to google. and all companies that can avoid paying maximum tax.The govenment have put us in this ressesion. There all sorry when they got found out about expenses claims. Would they be sorry if they didnt get found out, NO. The govenment should of reduced income tax through this down turn, but instead they reduced vat big deal...They stitch us up on car tax and all taxes. the congestion charge is another stealth not for congestion just for money...council tax is another pile of poo. If you have 1 wage coming in, in a 4 house family why should you pay full rate, When if your single on your own in a house you get reduced rate, thats when you have money living on your own.|
|posted by (2009-12-23 18:22:18)|
|Fair enough Souless - but I'm also using it every once a while.|
There's a lot of companies that are using the same tax allowance
and I have not even heard about them, and I'm sure that goverment
wouldn't use those 450M to help people anyway...
|posted by (2009-12-24 15:48:08)|
|rest in Peace GOOGLE...LOL|
|posted by (2009-12-25 09:59:16)|
|why are ppl moaning about google not paying their taxes,im 100% positive that if any of the pll here had a chance to avoid paying taxes they would hell you all avoid paying for movies wots the difference?|
|posted by (2009-12-25 10:07:46)|
|Google is like every other corporation. They spend (compared to us) a fortune on tax minimization and have a battery of accountants and tax lawyers to do the work for them. If anything it is the fault of the regulatory authorities who allowed them to incorporate is a manner whereby they could transfer the proceeds of advertising sale to another presumably a cheaper tax regime. Also it is not as if they did not pay any tax on the earnings of the company. |
KazzGirl if you look at the story in regards to Kerry Packer it was not he who paid for defibrillators in all the NSW ambulances and other organizations including the Surf Life Saving Clubs along the coast. It was the corporation of which he was the chairman. It was after he had suffered a heart attack while playing polo that he became aware of the lack of this equipment. It was after he had a kidney transplant that he requested the corporation to make donations to the transplant units throughout NSW. By his own admission Kerry Parker did not receive anywhere near the income he was entitled to as the major shareholder and managing director/chairman. As I understand it he only received a token allowance and the rest went into family trusts. He did however have full use of all the Corporation property that he needed to use. The house he lived in and the car for example and all rent free.
The Corporation would use these and all other donations to minimize its tax liability as such donations are fully tax deductable. While it is great for those that receive it, philanthropy is just another way to reduce tax. Without this incentive there would be no philanthropic foundations anywhere in the world. By the way sponsorship of sporting organisation falls under this heading as well although with a sponsorship it is called advertising.
I believe a much better system would be for tax to be pay in the country in which it is earned and without any deductions. Most if not all deductions listed as legitimate business expenses are expenses that the company would have had in the course of doing business anyway.
|what a joke how can they not pay tax on that amount of cash .....|
|that is a joke how google did not pay tax in 2008. every single money that is made by businesses would have a tax fee for every dollar made as to a percentage every person in the world who works gets taxed with their pay. you cant tell me that nothing is being done about it because i work my ass off and still have to pay tax and same as my dad who works hardout and gets almost half his pay taxed so why shouldn't google get taxed for 2008. the world is meant to be fair no one should be treated unequally and if left treated unequally will cause future problems. that's why there are alot of anger and hatred in the world cause of things like this and they don't even take notice they just think about themselves and think we are a bunch of dumb shits when we are not. i even know people who are struggling in life to make ends meet but all this tax isn't making it easy but they still follow the law and you got google who are already rich and not paying taxes that just doesn't add up everything has a tax fee EVERYTHING!!! there are alot of things out there that if google did pay tax then that they could do to help out the economy and people but its all about being greedy and just makes you wonder if the government has an involvement in this issue.||
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