Google business tax claims

The executive chairman of Google, Eric Schmidt blames the United Kingdom's soft tax laws for his company's rather low corporation tax payments in recent years.

Google, the technology and internet search engine giants are continuing to take heavy criticism for using UK tax laws to avoid paying a more significant level of business taxes. In the past 6 years Google has paid a mere £8 million in tax despite generating £6 billion in revenues in the same period.

Mr Schmidt told the Edinburgh Television Festival last week that Google "loves" the United Kingdom and would pay more corporation tax if the law required them to do so. He said the company remains restricted by the UK's low business tax requirements. 

Speaking at the festival, Mr Schmidt is quoted as saying: "It is true we could pay more tax but we would have to do so voluntarily. It's called paying the legally minimum amount of tax required,". He also said: "The fact of the matter is there are lots of benefits to [being in Britain]. 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 comments come in the aftermath of past and ongoing controversy surrounding the UK's corporate tax system. This controversy has recently seen the campaign group UK Uncut target the large high street chains including Barclays, Vodafone and Boots the chemist. 

The low business tax regime in the UK is still very competitive for UK, Eurozone and international entrepreneurs.  And business tax rates are set to reduce even further in the coming years. Want to find out more? Come and see us at St Matthew e-Accounting or go to www.stmworldwide.com/uk-limited-company