Google UK Avoids Paying £450 Million Every Year

The California-based search engine giant, Google, has been accused of avoiding payment of the corporation tax on the money which it generates in UK through advertising.

The company reportedly siphons its UK revenue through its European headquarters in Ireland, which apparently levies less corporation tax than the UK.

Google Inc, which controls 90 percent of Britain’s search engine market, generated £1.6 billion in advertising revenue last year of which £450 million corporation tax was never paid by the company.  

It has been reported that according to the accounts filed by Google UK, advertising revenues generated from British customers were never mentioned in the account books as it was found that all the revenue was transferred to its Ireland subsidiary. 

Interestingly, Google Inc’s annual report indicates that out of the $21.5 billion generated in revenue, almost 14 percent came from the UK, making it the largest revenue field outside the US.  

The accounts filed by the company mention that the ‘principal activity’ of its UK subsidiary is to provide marketing services for Google Ireland and perform research and development activities for its parent company in the US. 

It seems that for a company which is built on the motive of ‘Don’t be evil’, this tax-evasion controversy is a huge blow to its reputation.