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Google Pay £37m in Tax for Last Year

It’s that time of year again…the time where Google release their annual accounts, and as expected their tax bill isn’t quite what you would expect.

I’ve talked before about Google and their tax payments of course, and how many financial experts have criticised the company for maybe not paying enough.

Now, you must understand this is just all speculation and Google may very well be operating completely within UK law and doing everything above board.

It’s just that many people have unanswered questions about how a company that does billions of pounds in revenue, only pays a fraction of that in tax.

With that being said, the £37 million they have just paid to HMRC is more than they have paid in the past, with some years only seeing a small payment from Google that barely totalled a few million.

According to the most recent statement, Google did £1.03 Billion in sales last year, and this resulted in a pre-tax profit of £149 million. They have since paid £37 million in tax.

Much of their expenses came from hiring around 3000 workers in the UK last year, compared to only 600 workers the year before.

However, some experts have claimed, that in their opinion, this doesn’t actually show the full story, and it could very well be that Google have got very clever in how they do their accounts.

For example, the official accounts published in America for Google shows that the company had revenue of £6 Billion pounds in the UK last year. Many financial writers have noticed this discrepancy, with some calling for the government to take a closer look at exactly how Google runs their ship.

Maybe they just have really good contractor accountants? I really don’t know, and everything they are doing could be completely above board and on the level.

I suppose it does become more difficult to accurately look into a major company such as Google from the outside, especially when you consider they have many different brands.

For example, Google own the popular website YouTube, as well as many other sites that get millions of visitors a day. Good luck trying to work out all that. You couldn’t do it in a notebook that’s for sure.

Google had to pay some back taxes last year if you remember…£130 million worth. Even with that kind of payment there was many critics, as some financial commenters believed it was nowhere near enough, and that Google should be paying back taxes in the Billions, not the Millions.

A spokesperson for Google recently commented that “As an international business we pay the majority of our taxes in our home country, as well as all the taxes due in the UK.”

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