ADVERTISEMENT

Company to pay £130m back taxes in UK

Google said late on Friday the 130 million pounds would settle a probe by the British tax authority, which had challenged the company’s low tax returns for years.

Google has announced its decision to pay £130m back taxes in UK

Google, now part of Alphabet Inc. says it will pay the 130 million pounds back taxes imposed on it by the British tax authority.

The taxes were imposed after the British tax authority took a second look into why the company had paid low tax returns since 2005.

It said it had also agreed a basis on which tax in the future would be calculated.

"The way multinational companies are taxed has been debated for many years and the international tax system is changing as a result. This settlement reflects that shift, " a Google spokesman said in a statement.

ADVERTISEMENT

Google has been under pressure in recent years over its practice of channeling most profits from European clients through Ireland to Bermuda, where it pays no tax on them.

In 2013, the company faced a UK parliamentary inquiry after an investigation showed the firm employed hundreds of salespeople in Britain despite saying it did not conduct sales in the country.

The deal comes as governments around the world seek to clamp down on multinational companies shifting profits overseas to reduce their tax bills.

EU competition authorities have investigated arrangements used by Amazon and a unit of Fiat in Luxembourg, Apple in Ireland and Starbucks in the Netherlands, and may start new probes.

British Finance Minister George Osborne welcomed the deal, saying on Twitter that it reflected new rules that he had introduced but others were less impressed.

ADVERTISEMENT

The Finance Spokesman for the opposition Labour Party John McDonnell, said the tax authorities needed to explain how they had settled on the figure of 130 million pounds, which he described as relatively insignificant.

"It looks to me that this is relatively trivial in comparison with what should have been mad. In fact one analysis has put the rate down to about 3 per cent, which I think is derisory,’’ McDonnell said on Saturday.

"This looks like another sweetheart deal,’’ he said. Between 2005 and 2013, Google had a turnover of 17 billion pounds and its main UK unit reported a tax charge of 52 million pounds, filings showed.

According to its annual report, in 2014, it had UK revenues of around 4 billion pounds but has not yet published its UK tax charge.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Kaduna Gov grants scholarship to 137 rescued schoolchildren, son of late teacher

Kaduna Gov grants scholarship to 137 rescued schoolchildren, son of late teacher

Siamese twin gets married while still conjoined with her sister

Siamese twin gets married while still conjoined with her sister

LP BoT kicks out Abure despite convention victory, takes over party affairs

LP BoT kicks out Abure despite convention victory, takes over party affairs

6 Labour Party lawmakers defect to PDP in Enugu State

6 Labour Party lawmakers defect to PDP in Enugu State

Tinubu's special assistant donates food items to 1,700 residents in FCT

Tinubu's special assistant donates food items to 1,700 residents in FCT

Anambra PASAN begins strike over Soludo's failure to grant financial autonomy

Anambra PASAN begins strike over Soludo's failure to grant financial autonomy

Governor Sanwo-Olu pays ₦4.48 billion to 1,455 retirees in accrued pensions

Governor Sanwo-Olu pays ₦4.48 billion to 1,455 retirees in accrued pensions

Court discharges ex-AGF Adoke, 6 others in Malabu oil scam case

Court discharges ex-AGF Adoke, 6 others in Malabu oil scam case

Nigerians are expected to pay for TV licences — here’s what the law says

Nigerians are expected to pay for TV licences — here’s what the law says

Pulse Sports

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

Michelle Alozie: I had to do it because of African referees

Michelle Alozie: I had to do it because of African referees

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

ADVERTISEMENT
ADVERTISEMENT