Google’s tax avoidance is called ‘capitalism’, says chairman Eric Schmidt<\/a> in The Telegraph.<\/p>\nThe Text:<\/strong> Mr Schmidt’s comments risk inflaming the row over the amount of tax multinationals pay, after it emerged that Google funnelled $9.8bn (\u00a36.07bn) of revenues from international subsidiaries into Bermuda last year in order to halve its tax bill.
\nHowever, Mr Schmidt defended the company’s legitimate tax arrangements. \u201cWe pay lots of taxes; we pay them in the legally prescribed ways,\u201d he told Bloomberg. \u201cI am very proud of the structure that we set up. We did it based on the incentives that the governments offered us to operate.\u201d<\/p>\n\u201cIt\u2019s called capitalism,\u201d he said. \u201cWe are proudly capitalistic. I\u2019m not confused about this.\u201d
\nIn Britain Vince Cable was unimpressed by Mr Schmidt\u2019s views. The Business Secretary told The Daily Telegraph: \u201cIt may well be [capitalism] but it\u2019s certainly not the job of governments to accommodate it.\u201d<\/p>\n
A Californian pressure group called Consumer Watchdog wrote to the Senate\u2019s Finance Committee demanding a hearing on Google\u2019s \u201cglobal tax avoidance strategies\u201d.<\/p>\n
<\/p>\n
Consumer Watchdog\u2019s director John Simpson called for the Committee to schedule a time for Mr Schmidt and Google\u2019s chief executive could \u201ctestify under oath and explain their company\u2019s apparent abuse of the tax code to the detriment of all who play fairly.\u201d<\/p>\n
Mr Simpson urged the Senate to work with \u201cother countries\u2019 tax authorities\u201d to \u201cput an end to egregious loopholes that allow cynical exploitation by this generation\u2019s Robber Barons.\u201d<\/p>\n
\u201cGovernments in Europe, many of which have ben targets of Google\u2019s morally bankrupt tax policies, are actively seeking redress,\u201d he wrote. \u201cBut this is not a problem that only impacts other countries\u2019 revenues. Google\u2019s tactics strike at the US Treasury as well, forcing the rest of us to make up for the Internet giant\u2019s unwillingness to pay its fair share.\u201d<\/p>\n
He added: \u201cWhat makes Google\u2019s activities so reprehensible is its hypocritical assertion of its corporate motto, ‘Don\u2019t Be Evil’.\u201d<\/p>\n
Documents filed last month in the Netherlands show that Britain is Google\u2019s second biggest market generating 11pc of its sales, or $4.1bn last year.<\/p>\n
But the company paid just \u00a36m in corporation tax. Overall, Google paid a rate of 3.2pc on its overseas earnings, despite generating most of its revenues in high-tax jurdisdictions in Europe.<\/p>\n
The company reportedly uses complex tax schemes called the Double Irish and Dutch Sandwich, which take large royalty payments from international subsidiaries and pay tax in low rate regimes.<\/p>\n
By channelling its revenues through Bermuda, Google avoided $2bn of global income levies last year.<\/p>\n
The tax arrangements add fuel to accusations made by British MPs that Google and other firms including Starbucks and Amazon, have been \u201cimmorally\u201d minimising its tax bills.<\/p>\n
Matt Brittin, Google\u2019s UK boss, said MPs were blaming companies for a system that they had designed. \u201cGoogle plays by the rules set by politicians,\u201d he said. \u201cThe only people who really have choices are politicians who set the tax rates.\u201d<\/p>\n
Last week, Starbucks caved into public pressure and promised to pay \u00a320m to the Treasury over the next two years. However the trigger more criticism of \u201coptional\u201d tax payments.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Article: Google’s tax avoidance is called ‘capitalism’, says chairman Eric Schmidt in The Telegraph. The Text: Mr Schmidt’s comments risk inflaming the row over the amount of tax multinationals pay, after it emerged that Google funnelled $9.8bn (\u00a36.07bn) of revenues from international subsidiaries into Bermuda last year in order to halve its tax bill. […]<\/p>\n","protected":false},"author":49,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[259],"tags":[],"yoast_head":"\n
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<\/p>\n