Connect with us

Hi, what are you looking for?

Right Decision NowRight Decision Now

Business

Google’s UK tax bill jumps from £50m to £200m

The amount of tax Google paid to the Treasury rose from £50 million to £200 million in the past 18 months, according to accounts to the end of December.

Its turnover rose from £1.8 billion to £3.4 billion, with a profit of £896 million, up from £226 million in June 2020.

These figures cover a year and a half as the business moved its accounting period from the end of June.

Google opened its first UK office in 2003 where staff are principally involved in research and development and marketing. It is in the process of developing a huge site in London’s King’s Cross which will have space for 4,000 staff, in a horizontal skyscraper that will be 330m wide. It bought the land in 2013 for £290 million.

This year it spent £788 million buying the Central Saint Giles development in London’s West End where it has rented office space since 2012.

It took on 577 more staff since June 2020, and has 2,275 working on sales and marketing, 2,412 in research and development and more than 1,000 in management and administration

Along with other US tech giants, the company has been repeatedly criticised for not paying enough tax in the UK. Google’s European operation is based in Dublin, where taxes are lower.

A spokeswoman for Google said “Our global effective income tax rate over the past decade has been close to 20 per cent of our profits, in line with average statutory tax rates. We have long supported efforts via the OECD to update international tax rules to arrive at a system where more taxing rights are allocated to countries where products and services are consumed.”

Britain introduced a digital services tax in 2020, levied at 2 per cent of gross revenue of large digital companies derived from users in the country. Last year, the OECD struck a deal to reform the international tax system which will supersede this next year.

The agreement was reached after nearly 140 countries agreed a deal on new rules for international corporate taxation. The reforms are designed to ensure that multinationals pay an extra $100 billion a year in taxes and shift more of their liabilities to countries where they derive their revenues.

Under the new framework companies will pay a minimum 15 per cent global tax rate. The aim is to end competition between countries, under which intellectual property has been shifted to tax havens and profits have been declared in low-tax jurisdictions.

Read more:
Google’s UK tax bill jumps from £50m to £200m

    You May Also Like

    Business

    The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector...

    World News

    BEIJING — China landed an uncrewed spacecraft on the far side of the moon on Sunday, overcoming a key hurdle in its landmark mission...

    World News

    LONDON — Talks aimed at reaching a global agreement on how to better fight pandemics will be concluded by 2025 or earlier if possible,...

    World News

    SINGAPORE — Ukrainian President Volodmyr Zelensky’s unscheduled appearance at Asia’s biggest security conference dominated proceedings on Sunday after China’s defense chief slammed “separatists” in...

    Disclaimer: rightdecisionnow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 rightdecisionnow.com | All Rights Reserved