Google Dodges Billions In Tax, Report Claims
What do you get when you mix a multi-international corporation and more money than you can shake a stick at? Well that would be claims of tax dodging, according to a recent report under The Guardian. The Guardian claims that the Irish subsidiary of Google actually pays an effective 20 per cent rate on its earnings in Ireland, when the country’s corporation tax – one of the lowest in Europe – stands at just 12.5 per cent. All of this sounds great, doesn’t it? However technology website Thinq said on the subject:
When you realise what tiny proportion of its (Google’s) vast profits the company actually pays that tax on. After a mammoth payment of €5.467 billion for “administrative expenses” is deducted, the €5.5 billion gross profit revealed in Google’s 2009 accounts shrinks to just €45 million.
What that means for the Irish economy is that instead of many hundreds of millions in tax, the search giant pays just €9.6 million.
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