Google Agree Paying £130 Million to UK Government as Back Taxes
Google, the tech company agreed to pay £130 million to the UK government as back taxes. It comes after an inquiry into the existing tax arrangements of the company.
The amount collected from Google will go into Her Majesty's Revenue and Customs (HMRC) reimbursing all the missed taxes which the company has not paid for past ten years.
It is additional to a new tax arrangement which the HMRC and Google have agreed upon.
A spokesperson from Google said, "We have agreed with HMRC a new approach for our UK taxes and will pay STG130 million, covering taxes since 2005. We will now pay tax based on revenue from UK-based advertisers, which reflects the size and scope of our UK business."
However, the deal faced criticism from Labour chancellor John McDonnell saying it's a "derisory" settlement and has called for an investigation by the National Audit Office.
In March while presenting the budget, the Chancellor announced introduction of a supposed "Google tax" that aims the firms which moves their profits abroad.
The tax on diverted profits is aimed at discouraging bigger companies from shifting their earnings from UK to shun tax.
- Fully vaccinated gamblers no longer need to wear face mask inside Nevada casinos
- Development of web resources
- Hyundai’s luxury brand Genesis to make European debut with launch of Electrified G80
- Canoo seeks patent to protect modular & customizable EV platform architecture
- Democratic Senator Tom Carper wants Biden administration to ban gas-powered cars by 2035