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.

Featured Video

Behmor's app controlled coffee maker links to the Web for better brewing

The $329 Behmor Connected Coffee Brewer boasts the guts of an SCAA-approved drip coffee maker melded with a Wi-Fi radio, plus Internet links and mobile app control all in the interest of creating better pots of java.

by Brian Bennett