Does Anyone See Anything Wrong With This?

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The head of the internet giant Google has defiantly defended his company’s tax avoidance strategy claiming he was “proud” of the steps it had taken to cut its tax bill which were just “capitalism”.

In an interview in New York Eric Schmidt, Google’s Chairman, confirmed the company had no intention of paying more to the UK exchequer. Documents filed last month show that Google generated around £2.5 billion in UK sales last year but paid just £6m in corporation tax.

The Californian based search giant has also been revealed to have sheltered nearly $10bn of its revenues in Bermuda allowing it to avoid some $2bn in worldwide income taxes in 2011.

But Mr Schmidt said such schemes were legitimate and the company paid taxes “in the legally prescribed ways”.
“I am very proud of the structure that we set up. We did it based on the incentives that the governments offered us to operate,” he said.

The Silicon Valley boss went on to suggest that Google would not turn down the opportunity to draw on the big savings allowed under the law in the countries it operates in: “It’s called capitalism. We are proudly capitalistic. I’m not confused about this.”

He also ruled out following Starbucks in voluntarily handing more money over to the UK Government.
“There are lots of benefits to [being in Britain],” he said.

“It's very good for us, but to go back to shareholders and say, 'We looked at 200 countries but felt sorry for those British people so we want to [pay them more]', there is probably some law against doing that.”

Mr Schmidt’s defiant stance is unlikely to find favour on either side of the Atlantic with both the American and European Governments searching to find ways of forcing “stateless” internet companies such as Google to pay more tax.

The issue will be raised by George Osborne when Britain takes over the chairmanship of the G8 and will also be investigated by the Organisation for Economic Co-operation and Development (OECD).

Last week the Chancellor said he was committed to “leading the international effort” to prevent international companies transferring profits away from major economies, including Britain, to tax havens.

“We will put more resources into ensuring multi-national companies pay their proper share of taxes,” he said. “With Germany and now France, we have asked the OECD to take this work forward and we will make it an important priority of our G8 Presidency next year.”

Tonight Margaret Hodge, chairman of the powerful House of Commons Public Accounts Committee, which recently cross examined Google UK on its tax affairs said Mr Schmidt should be ashamed rather than proud of his company’s tax bill.

“For Eric Schmidt to say that he is ‘proud’ of his company’s approach to paying tax is arrogant, out of touch and an insult to his customers here in the UK,” she said.

http://www.independent.co.uk/news/u...roud-of-our-tax-avoidance-scheme-8411974.html​

 

Yeah! I see the result of a government that is so tied itself in knots that it can no longer write an intelligible sentence let alone a law that cannot be twisted.

 

No one else? Come on, liberals... let's have some fun.

 

Why do I care about the tax system in the UK? Sorry Steve. I just don't.

 

Is that all you can say? No one else??

 

Won't argue with that rlm.

If one looks at the bigger picture this is darn near any government these days.

Loopholes.

BTW for Coin.

Did you see anything wrong with it?

 

Are you kidding? I'm a capitalist. He did everything legally, right?

 

Do I see something wrong with it? Yes, I see another country which apparently has a tax system that is not simple enough. One that is probably bought and paid for and not legislated intelligently as a tax system.

 

Have to comment on this one, who hear would pay more tax than they were legaly required to do? I know full well that I for one wouldnt so why should a big company? Our Government passed the tax laws and if they are not able to pass a law that stops any tax avoidence then they should get out of government and let the accountants run the tax system