Google pays £130 million in UK in back taxes

According to the reports, the revenue and customs of the Google and UK tax watchdog Her Majesty have now come to an agreement. This agreement follows a six year open audit of the books of Google. According to the audit report for the period dating back to 2005, Google will pay £130 million as taxes.

As per the latest reports, Google is accused of avoiding taxes in UK. However, it has got some exemption due to the multinational tax structure in Europe. We know that the European headquarters of the company are located in Ireland where the corporate taxes are lower in comparison to that in UK. Also, they are holding some offices in the corporate tax heaven, Bermuda. This has led Google to pay just £20.4 million taxes on the total sales of £3.8 billion made in 2013.


In response to this, Google says that from now onwards it will register a large portion of its sales activity in UK. Also, from now on Google will pay taxes on the basis of the sales made and not on profit, which was the case until now.

According to Matt Brittin, who is the president of EMEA business and operations branch of Google, the company has always followed rules and they will continue to do so.

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