Saturday, January 23, 2016

Google reaches agreement with British on tax payment –

The US Internet giant Google has paid over the years too little tax in the UK. The authorities in London agreed now with the company on a subsequent payment. Some politicians keep the deal but a farce.

Google will pay UK taxes in the amount of 130 million pounds (172 million euros) to and will in future pay more taxes there. So it provides for an agreement between the US technology group and the tax authorities. Core of the change is that Google will pay in the UK in the future also taxes on revenue from its advertising clients and not just posted profits.

The additional payment is made for the years from 2005. The UK IRS “Her Majesty’s Revenue and Customs’ (HMRC) had over six years Google examines transactions. The European headquarters of the Internet company in Dublin was repeatedly taken by the UK authorities under the microscope. Google had chosen the location for its European headquarters because of the advantageous tax laws for companies. In Ireland pay corporations only 12.5 percent on their profits. Other companies such as Facebook, Amazon or Starbucks have chosen a European headquarters in Dublin.

Google’s profits justifying higher taxes

The British Finance Minister George Osborne wrote on Twitter: “The tax agreement with Google is a victory for us I expect that other companies now pay their share..”

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From the opposition on the other hand came criticism. John McDonnell, economic spokesman for the Labour Party, called the tax agreement as ridiculous. In addition, it is unfair to taxpayers. For him I look as if the sum is relatively insignificant compared to what Google with its billion-profits really should pay. McDonnell appealed to the British Court of Auditors in the course of the deal investigations initiated.

Several corporations in the review

Google and other large companies are already for several years to pay in the criticism too little tax in Europe. In the past, media reports about illegal tax Deals from corporations had already been published by various tax authorities. The Commission examined, for example, the tax-saving models from Apple, Starbucks or the Italian carmaker Fiat.

In particular, the importance of the sales market should play a role in taxation, say the British authorities , Europe, for example, the second-largest market after the US for Google. The Group should therefore pay a tax rate that corresponds to the importance of the market for the company. For this purpose, the British authorities also called for other companies such as Facebook, Amazon or Starbucks on. Google and its new parent company Alphabet inc. Possess the news agency AP According to over $ 73 billion cash assets.


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