WASHINGTON — British lawmakers are using Google and Amazon as political punching bags, calling Google’s tax policies as “contrived” in trying to avoid British taxes. Reuters reports that this investigation was not favorable to Google.
Note to Britain, Google and other big companies like Apple do the same with the U.S., which has U.S. lawmakers upset as well. But, corporate taxes are high in certain countries, which pushes these corporations to search elsewhere to pay taxes.
Google has its sales staff in Britain, which violates British law (according to lawmakers), and pays its taxes through Ireland. Google said that its tax practices are legal and if the British have problems with it, they should look a little deeper into Google’s records or change the law.
Google earned up to $18 billion in revenue and paid $16 million in taxes, because it routed its revenues through an affiliate in Ireland. Amazon did the same, routing their revenue through an affiliate in Luxembourg.
The Northern Europe executive for Google, Matt Brittin, said that the Google staff in London do not sell to British clients.
France and other European Union countries are looking at a “Google Tax”, but the results could be catastrophic if stricter tax laws are passed.