Google’s UK Tax Leak: The £11.6 Million Eye‑Opener
Yesterday’s disclosure sent shockwaves through London’s corporate circles: Google’s UK arm paid a mere £11.6 million in corporation tax on a staggering £506 million of local revenues in 2012. That’s a tax bite no bigger than a lunch‑box snack compared with the £36.8 million profit the same arm posted that year.
Why the Curtain is Rising Again
It’s not the first time Google has been put square‑up with the taxman. Remember August 2012? Politicians were ranting about “payments on account” deadlines and a nasty 7.5% interest charge that was going to follow the tech giant. Fast forward to May, and MPs on the Public Accounts Committee got their hands dirty, calling Google’s schemes “evil” and “devious.”
What’s the Root of the Drama?
- Sales Attribution Shuffle – Google’s UK office often claimed that sales were handled in Ireland, while the UK office was merely a marketing hub. This clever labeling helped them skirt large amounts of UK corporation tax.
- Google’s Internal Finding – A Reuters probe uncovered that it was actually UK‑based staff who were making the sales, not Irish ones.
- Engineering Denials – Chairman Eric Schmidt stepped up the mic in May, saying: “I can’t defend an irrational structure – a computer engineer wouldn’t design this.” He added, “We’ll keep investing in the UK no matter what.”
And the Big Takeaway
While Google’s global profit that year was a whopping $10 billion, the UK figures paint a starkly different picture. As the tech titan rewrites its tax playbook, the public’s patience is thinning. Will the next headline be “Google’s tax game gets a rewrite” or “Britain’s tax system gets the blame?” Only time and a few more disclosures will tell.
