— AO says: Just before you read the article I’d like to say that Google is not alone in this and recommend you read these two related items.
British Member of Parliament (MP) on Google: MP on Google tax avoidance scheme: ‘I think that you do evil’ (Guardian)
Of Courxe Google isn’t the only one: Global giants’ tax scheme sandwich leaves bitter taste (The Australian)
(Graphic: The Australian)
[Federal assistant treasurer] David Bradburyexplained how Google and others, quite legitimately, use a system called the “double Irish Dutch sandwich” to transfer revenue through a three-stage series of financial shuffles and end up paying less than 12.5 per cent on the transaction overall.
He said that after a report this year quoted Google Australia’s annual income tax bill as being as little as $74,176, “a spokesman for Google asserted that the correct figure was $781,471″.
advertising revenue from Australia has been estimated by media analysts to be over $1 billion per annum.”
Simon Duke and Jon Ungoed-Thomas
The Sunday Times, May 18 2013
A FORMER Google executive has blown the whistle on a massive and “immoral” tax avoidance scheme that has “cheated” British taxpayers out of hundreds of millions of pounds over the past decade.
Barney Jones, 34, who worked for the internet search giant between 2002 and 2006, has lifted the lid on an elaborate structure which diverts British profits through Ireland to the Bermuda tax haven.
Although Google’s London sales staff would negotiate and sign contracts with British customers, and cash was paid into a UK bank account, deals were technically booked through its Dublin office to minimise its liabilities here. Jones, a devout Christian and father of four, is ready to hand over a cache of more than 100,000 emails and documents to HM Revenue & Customs (HMRC), detailing the “concocted scheme.”
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