Google accused of UK tax dodging

Do no evil

...and taxes are evil, right?

By Josefov on 21 Dec 2009

The pot calling the kettle black

Labour MP Austin Mitchell echoed Cable's condemnation, claiming that "Google isn’t just sucking money out of local newspapers and other people who rely on advertising for a living — it’s also draining money out of the public finances."
That’s rich coming from a government who has sucked money out of the of the British tax payer and squandered it on themselves and the banks not only that but claiming absurd expenses and claiming dodgy second home allowance not to mention avoiding tax themselves. Nothing but hypocrites in my opinion.

By stuart2017 on 21 Dec 2009

Lots of big companies do the same and it is perfectly legal.

However doesn't make it right. Small businesses end up being more taxed than big ones simply because small businesses can't afford to move their HQ overseas.

By cyberindie on 21 Dec 2009

What nonsense

There are thousands of UK registered companies, trading overseas, that only pay tax in the UK - not in the jurisdiction they trade and generate revenue in. If the UK REALLY wants to get involved in THAT particular game, they are going to come out HUGE losers. Think Tesco, Marks and Spencer, any of the arms companies etc. Pointless politiking.

By Bassey1976 on 21 Dec 2009

Hmm

Well it's not really as clear as that because they do have a base in the UK.

The Turkish govnment are also looking into this too as Google have bases there that make considerable profit but still dont pay any tax.

By JStairmand on 21 Dec 2009

Vacuous grandstanding

The UK has gone out of its way to make itself friendly to companies who want to avoid tax, arguing that in the long run the UK economy gains from their presence. In this case the Irish have gone a bit further, and this just sounds like sour grapes from the Brits.

(As it happens the Irish economy needs that tax revenue as much as, if not more than, the UK!)

Besides - I come from Newry, just north of the Border, and for the last ten years my home town has been swamped by shoppers from the Irish Republic flood over the border to spend millions of Euros on cheaper booze and groceries. It's sucking money out of the Irish economy into the UK but I never hear Vince Cable moaning about that...

By Noghar on 21 Dec 2009

Oh Austin!

"Labour MP Austin Mitchell echoed Cable's condemnation"

From a NuLabour MP this is hilarious. How many super-rich non-doms are allowed to work in the UK, yet pay no tax?

Rank hypocrisy of the most perfidious kind.

By Lacrobat on 21 Dec 2009

The solution is really quite easy, get the irish to put up taxes!

By anthonysjones on 21 Dec 2009

High Taxes are the problem

It is simple really; these companies will base themselves where they pay least tax. This is what our government doesn't ever seem to get - we live in a global economy. If corporation tax spirals upwards more companies will do a Google.

Is it a surprise that some major banks put all their losses onto their UK arms so they can avoid tax here for the next few years?

By Deadly on 21 Dec 2009

And what did they expect?

People should not confuse Google Inc with that nice search-engine thingy that was invented in the 1990's.

Google (Inc) is a traditional US corporation whose only aim is to maximise its profit, usually hiding behind the "fiduciary responsibility" fig leaf.

Of course loads of other charlatans get away with similar and worse, but I fail to see how that somehow makes it "right".

I loved your sub-editor's use of "more punitive". There's nothing like an objective reportage of facts and this was nothing like....

The adjective is valid only id you subscribe to the view that tax is by definition "punitive" otherwise its bias... AS a standard rate taxpayer my tax is "even more ounitive". Go figure.

By wittgenfrog on 21 Dec 2009

Yes, But

don't forget that VAT in Eire is 21% so if you download something from,
say Adobe, your vat is charged at this rate because the server is In Eire. You may have bought it in the UK shop but!!!!!!!!!!!!!!

Another big company tatic

By delturner1 on 22 Dec 2009