Google Legally Avoids TaxesAdded: Tuesday, August 21st, 2012
Category: Bit Torrent Freedom > The Industries Of Records, Gaming, Software, Movies
Tags:ET, p2p, Torrent, Piracy, Peer To Peer, Network, Hackers, Internet, BitTorrent, Google, utorrent, bitcomet, extratorrent, 2010, www.extrattorrent.com
The world’s most popular search engine Google isn’t paying much tax in the United Kingdom, and of course the country’s Parliament is not very happy about it. In fact, Google has found a great way to avoid paying most of British taxes.
The Parliament of the United Kingdom is currently thinking of dragging a company’s executive into the mother of all Parliaments to explain how Google manages to save so much in taxes, while generating massive annual profits.
The company paid as little as £6,000,000 in British taxes despite generating a profit of almost £400,000,000. The truth is clear and legal: Google does it via using its Ireland-based subsidiary having an agency agreement with Google UK. In other words, 90% of the company’s profits are transferred to Ireland, from where Google pays a host of fees, which include licensing charges to a Google-owned Bermuda company. In the end, there is almost nothing left of the profits that could stay in the United Kingdom to be taxed.
Google’s current strategy, dubbed the “Double Irish” method, is absolutely legal at the moment. It isn’t as if Parliament had no idea what the search giant was doing. Two years ago, a report detailed the ins and outs of the company’s savings scheme and revealed that Google saved $3.1 billion in taxes within 3 years. The company has long been trying to reassure the British government that Google doesn’t need to change anything in the scheme, because taxes are only one piece of what the corporations can deliver to a local economy.
For example, Google claims that it paid “a substantial contribution” to the economy of the United Kingdom in the form of local, payroll and corporate taxes. Indeed, the company employed over a thousand employees, helped hundreds of thousands of startup businesses to grow on the Internet and invested millions of pounds to support new tech businesses in East London, let alone Google Panda.
In other words, the idea Google tries to deliver to the UK Parliament is “leave us alone we behave well”. But the government understands it as the words of the mighty and rich corporation which simply doesn’t want to pay tax. In response, Google claimed that it would readily pay a larger rate of tax – this time last year – but only if the law really required the company to do so.
August 21st,2012Posted by:
Tuesday, August 21st, 2012
|posted by (2012-08-21 15:55:30)|
|Yeah nevermind the multibillion dollar mob business the churches are running at a tax cost of 0.00, an internet company has to pay because they haven't payed enough!|
|posted by (2012-08-21 17:07:41)|
|"because taxes are only one piece of what the corporations can deliver to a local economy" LOL ya right, as if they will give enough of it to improve the ECO in the UK LOL, Im in the US and I haven't seen then them give a dam dime to ANY body over here to fix the ECO.|
@cbox: LOL the mob probably owns google or does business with them on the side.
|posted by (2012-08-21 17:42:03)|
|Nice Article proofs that it really doesn't matter if something is legal or not they find a excuse to make you pay extra anyway...|
|posted by (2012-08-21 18:26:26)|
|No I think the point should be that these mega rich companys should not be allowed to use loopholes to get out of paying taxes. Can I employ their strategy to pay less tax, NO. It's loopholes purposefully left open for the minority mega rich. On the other hand, "go google" screw the government, I hate them and their entire system.|
|posted by (2012-08-21 19:42:00)|
|Business is business, but individuals do this too. Many successful people in UK have moved out of the UK because of its taxation regieme.|
|taxes are theft to begin with! Tax is the modern slave trade|
The Brits are sniveling and whining about not getting enough money out of Google or any other Mega Corporation? Jeez still LMFAO... EVERY Country does this including America you all beat up on..
Loop Holes... LMFAO who do you think put those Loopholes there in the first place? Yep the same greedy politicians YOU voted into office.
They the corporations pay millions to get billions back in breaks while the people get screwed; buy hey that is the free market.
THAT is the way the Real world works good and the bad.. The have it another way you might as well live in North Korea; China and any other country if you think you will live a better life.
|posted by (2012-08-22 07:17:48)|
|Horrible the rich will always get richer and poor will get poorer.|
|posted by (2012-08-23 01:31:34)|
|in this case i'd say good job google... the uk gov taxes u at a ridiculous rate and throw them all to ppl who are "permanently disabled"||
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