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GOOGLE’S CORPORATE TAX payments over a six-year period are to be investigated by the British tax authorities – in an investigation which will likely see the relationship between the British and Irish companies come under close scrutiny.
A report published by the House of Commons’ Public Accounts Committee reveals that the UK’s Revenue and Customs service (HMRC) was undertaking “a review of the tax returns filed by Google UK for 2005-11 inclusive”.
Google said the review was standard practice and that it would co-operate fully with the review.
Google’s British company, Google UK, recorded revenues of £396 million in 2011 but paid corporation tax of only £6 million because of arrangements which see Google’s international companies pay hefty licencing fees to a sister company in Bermuda, which owns its most valuable intellectual property.
The company’s Irish operations could also come under the spotlight because of the close relationship between the British company and the Irish one, Google Ireland Ltd, which oversees the company’s operations across Europe.
Google employs 1,300 staff in the UK – but told the Public Accounts Committee in public hearings that the employees were paid by Google Ireland Ltd, rather than its British sister company.
Though the company said profits should be taxed in the jurisdictions in which they are generated, it defended its moves by saying its business was built on the search engine product generated by the US company based in Palo Alto, California.
MPs found that Google had undermined its own argument by having its intellectual property held by the Bermuda company rather than the US one which developed it – which could mean that the US was also being denied its own share of legitimate corporate tax.
Google Ireland’s tax situation is more exaggerated than its British counterpart: accounts for 2011 show the company registered an overall income of almost €12.5 billion, and turned a profit of €9.075 billion – thanks largely to the collection of advertising revenue from across Europe, the Middle East and Africa.
However, Google Ireland paid only just over €8 million to the Revenue Commissioners in corporation tax, because its pre-tax profits were just €24.4 million – thanks to the nearly €9 billion in royalties that Google Ireland paid to the Bermuda operation.
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Great to hear that small to medium firms could deliver 20,000 jobs however these small companies need to be paid on time for the services they provide and until legislation is in place to protect them the 20,000 jobs will be lost instead of created.
Spin the year out……could , should, would………
3 point plan . Every bit as good as the Famous 5 point plan .
Yet you let the council increase rates by 100% which is closing down loads of business and creating mass losses in jobs then Kenny the coward ignores his promise to remove upwardly only rents. Why do people put up with these liars. Pure s.c.u.m
Best not to hold one’s breath on job creation. This government is already the worst in living memory -YES- and that includes the last one. They have broken every commitment, displayed unseemly incompetence and cowardice and are devoid of any leadership qualities. They are now pussyfooting with the next €3billion promissory note payment due in February. Taoiseach Kenny is a laughing stock all over Europe. Does anyone really believe the economy will grow and create jobs under this government. The SFA is just a lapdog for IBEC. It should break away from its powerful masters and begin to see the wood from the trees. It’s very masters in IBEC have driven Ireland’s cost base into the stratosphere not to mention its role in the banking collapse – the two principle impediments to job creation. Get a life SFA.
20,000 jobs possibly(these people seldom do pessimistic forecasting).
80-100k emigrating, no figures for increasing disemployment due to austerity, and half a million already wasting away on breadlines to soupkitchens.
This is the ‘government’s’ economic plan?
They could but will they very very unlikely with austerity at the heart of irish policy. Just more BS from government.
The domestic economy is in ruins. If you disagree you are either a blue shirt or in denial. I want this country to escape the gloom but lets be honest so far we are not doing a good job of it.
Well I think these guys should take a walk down any street in the country and see the state of retail Ireland not to mention the business parks etc. it’s not a pretty sight, I genuinely fear for the future of Ireland as one of our every growing population of ex pats…
Would it not be quicker to get DPD to deliver the jobs rather than waiting for these small businesses to get set up .. Surely DPD know the best routes by now …. Eh oh right
I do apologise for my apparent lack of humour … Or do 21 people work for fastway maybe …
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