U.K. watchdog demands probe into Google tax affairs

The search giant should be investigated by the U.K. tax authority over its approach to paying taxes, says a report by a parliamentary watchdog.


Google should be investigated by the U.K. tax authority HM Revenue and Customes over its tax affairs, according to a parliamentary watchdog.

The search giant came under heavy criticism from the U.K. Public Accounts Committee today for only paying $16 million in tax to HMRC on turnover of $18 billion between 2006 and 2011.

Google achieved this by basing its operations for Europe, the Middle East and Africa in Ireland, which has a corporation tax rate of 12.5 percent, less than half the 28 percent rate in the U.K. It then reduced its Irish tax liabilities by sending cash to Bermuda via a Dutch holding company.

Read more of "Google: UK politicians demand tax investigation" at ZDNet.

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