Google accused of UK tax dodge
I just read an interesting article on The Register website. They are reporting on an article Richard Murphy did for the Sunday Times:
“Search giant Google has been accused of avoiding UK tax by routing most of its earnings through Ireland. This means it saves about £100m a year by paying Irish corporation tax at 12.5 per cent rather than the 28 per cent it would face in the UK.
British advertisers send their money to Google’s Irish subsidiary, an arrangement that has been described as unfair and unacceptable.
This means that even though Google UK turned over £1.25bn in the UK it paid only £600,000 in UK corporation tax – 90 per cent of its earnings were channeled through Ireland.”
You can read the full article at The Register
Do you think this is unfair or just good tax planning?