Google tax behaviour "wrong": UK opposition party leader

Advertisement
By Reuters | Updated: 23 May 2013 12:57 IST
Google Inc's tax affairs will come under renewed scrutiny in Britain on Wednesday when the leader of the opposition Labour party accuses the Internet company of wrongly going to "extraordinary lengths" to avoid paying tax.

In comments designed to politically outflank Prime Minister David Cameron ahead of next month's G8 summit on what has become a high-profile issue, Ed Miliband, the Labour leader, will say he is disappointed that Google pays so little tax.

"I can't be the only person here who feels disappointed that such a great company as Google would be reduced to arguing that when it employs thousands of people in Britain, makes billions of pounds of revenue in Britain, it pays just a fraction of that in tax," Miliband will tell a Google event held just outside London.

"So when Google does great things for the world, as it does, I applaud you, but when Google goes to extraordinary lengths to avoid paying its taxes, I think it's wrong."

Advertisement

Google's methods of minimising its British tax bill have made front page headlines in Britain and angered voters at a time when their own incomes are being squeezed, putting pressure on politicians to be seen to be taking action.

Advertisement

British lawmakers have accused Google of using "smoke and mirrors" to avoid paying tax and the firm's Northern Europe boss, Matt Brittin, was called back to testify to MPs after a Reuters investigation showed the company employed staff in sales roles in London, even though he had told the committee in November its British staff were not "selling" to UK clients.

But Cameron, who has placed global tax regulation at the heart of the G8 summit he is chairing in June, has been coy about singling Google out for criticism, preferring to talk more generally about corporate tax avoidance.

Advertisement

Miliband, whose party is ahead of Cameron's Conservatives by up to 10 percentage points in opinion polls, criticised Cameron for not taking a tougher line.

"Google is said to have paid only 10 million pounds in corporation tax in the UK between 2006 and 2011, despite revenues of 11.9 billion pounds," Miliband wrote separately in a blog for The Huffington Post UK on Tuesday.

Advertisement

"I was surprised the prime minister failed to raise this when (Google Executive Chairman) Eric Schmidt attended the business advisory council's meeting." Cameron was too distracted by other issues, he said.

Britain will host a meeting of G8 leaders on June 17-18 at a golf resort in Northern Ireland and Cameron said in April that tax compliance was one of his G8 priorities.

Google is one of several high-profile companies to face far greater scrutiny of its tax affairs in recent months. Apple Inc. , Microsoft and Amazon.com have all been in the spotlight at a time of weak economic growth, high levels of public debt and squeezed household incomes in Britain.

© Thomson Reuters 2013

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Googel, Tax, British tax bill, Internet
Advertisement

Related Stories

Popular Mobile Brands
  1. Moto G67 Power 5G Launched in India With 7,000mAh Battery: See Price
  2. Moto G67 Power 5G Launch Today: Everything You Need to Know
  3. Apple's Low-Cost MacBook Launch Timeline, Price Leaked Ahead of Debut
  4. WhatsApp's Apple Watch App Is Finally Out: Check Features, Compatibility
  5. Vivo X300 Ultra Features Leaked; May Arrive With This Snapdragon Chip
  6. Moto G Play (2026), Moto G (2026) With Dimensity 6300 SoC Launched
  1. Realme UI 7.0 Launched With Light Glass Design, AI Notify Brief and AI Gaming Coach: See Eligible Phones, Beta Release Schedule
  2. Samsung Galaxy S26 Ultra Spotted in Leaked Design Renders That Hint at Rounder Corners
  3. Call of Duty: Black Ops 7 PC Specifications, Preloading Times Revealed; Activision Confirms Handheld Support
  4. Silicon Carbide-Based Motor Drive Enables a Smaller, Lighter Electric Aircraft Engine
  5. OnePlus Ace 6 Pro Max Key Features Leaked; May Be Equipped With Up to 16GB of RAM
  6. Moto G67 Power 5G Launched in India With 7,000mAh Battery, 50-Megapixel Sony Camera: Price, Specifications
  7. Southern Taurid Meteor Shower 2025 Promises Bright Fireballs in a Rare Swarm Year
  8. Moto G Play (2026), Moto G (2026) With MediaTek Dimensity 6300 SoC Launched: Price, Specifications
  9. How Hot Was the Universe 7 Billion Years Ago? Scientists Now Have an Answer
  10. Amazon Demands Perplexity Stop AI Tool From Making Purchases
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.