|As multinational corporations increasingly come under scrutiny for allegedly paying low taxes by shifting revenue across borders, Google’s Madrid offices have been raided in the investigation into the company’s tax affairs. Apparently, Google is suspected of not declaring some of its activities in the country.
According to media reports, the investigation focused on VAT payments and taxes on income received by companies or people that were not registered as Spanish residents. In response, Google claims that it complied with the Spanish tax law, as in every other country. Google is cooperating fully with the Spanish authorities to answer their questions.
It must be noted that French investigators raided Google’s Paris headquarters in May, also investigating the company for aggravated financial fraud and money laundering. For a while now, a number of European countries have been complaining about the way foreign tech firms generate profits in their countries but funnel them elsewhere. Such investigations bring result: for example, Google agreed to pay £130m in back taxes in the United Kingdom, which is intended to cover a decade of underpayment by the company. However, it had previously defended its record and explained that it was “the way the global tax system is working”.
This particular £130m deal triggered uproar from tax campaigners and opposition MPs, who made a conclusion that HM Revenue and Customs had thus allowed Google to continue funnel its UK sales through Ireland. French prosecutors also wanted to establish whether Google’s Irish headquarters controlled a “permanent establishment” in France. The country was seeking €1.6bn in back taxes from Google, while Italy demanded over €200m from it, accusing of perpetrating tax fraud.
The tech firm insists that its offices in European capitals are not fully fledged businesses, but rather satellites of its headquarters in Dublin, which only provide back-office services like marketing.
Authorities in the United States and a number of European countries have begun cracking down on “tax optimization” practices of many companies that robbed their coffers of billions of euros. For instance, Brussels is investigating Amazon’s tax arrangements in Luxembourg, along with targeting other global companies, including Apple, Starbucks and Fiat.
Friday, July 1st, 2016
|if the offices weren't important the offices wouldn't be there..stop lying liars at google liar faces liars|
|posted by (2016-07-02 11:39:04)|
|Google is basically an outer shell of NSA. Anything bad that happens to Google doesn't bother me one bit. I'm not alone in hating Google either....|
|Good they should pay and Uber is worse In Canada and every other non US company they operate they pay no taxes.||
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