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Google will pay 170 million euros in tax arrears in the UK
Google’s 130 million pounds, converted 170 million to pay back taxes to the United Kingdom. The amount came about after a six-year-long study by the British tax authorities.
Matt Brittin, Google’s head in Europe, announces the payment to the BBC. The amount covers the revenues from Google since 2005. Google also promises to pay appropriate amounts of tax in the future to the United Kingdom. According to the BBC paid Google in 2013 converted 24.5 million of tax in the UK. In that year, however, the company recorded a turnover of almost 4.6 billion euros. Brittin sees the payment of tax arrears are not considered admitting tax evasion by the company.
Google Logo new Most of Google pays his taxes in the country where the headquarters is located. In the case of Google Europe is Ireland, which is not part of the UK. Ireland has a favorable tax climate than the UK. Other large multinationals such as Facebook and Amazon are also criticized for their choices to establish their headquarters in tax havens. However, these practices are not illegal.
On what amount is calculated the tax and how much Google officially back taxes to pay, the parties do not disclose. Only the final amount of the agreement between Google Europe and Her Majesty’s Revenue & Customs published. Some British politicians say they are not happy to be there and suspect that the 170 million euro is too low amount.
Update, 14:47: Google’s sales in 2013 was labeled erroneously as profit. Also this 4.6 billion need to be and not million. The article is adapted. These amounts have been converted to the GBP to EUR exchange rate of 31-12-2013.
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