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.

GoogleMoneyThumb.jpg

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.

 

ARTICLE DISCUSSION

Conversation powered by Livefyre

Don't Miss
Hot Products
Trending on CNET

Hot on CNET

Saving your life at speed and in style

Volvo have been responsible for some of the greatest advancements in car safety. We list off the top ways they've kept you safe today, even if you don't drive one.