€8.8bn of royalty payments channelled through Bermuda by Google
Royalty payments amounting to €8.8bn were channelled to Bermuda by the US internet giant Google last year.
The payments are 25 per cent higher than in 2011 and will intensify concerns that the company is avoiding paying a fair share of corporation tax.
Google has already come in for heavy criticism because it records most of its foreign income in Ireland where it can take advantage of low tax rates. Comparatively little tax is paid in countries like the UK where customers place their orders.
A so-called “double-Irish” mechanism exploiting differences between Irish and US tax systems enables the company to route profits from Ireland to Bermuda through the Netherlands.
The figures come, the FT reported, from the accounts of a Google subsidiary, Google Netherlands Holdings, whicyh show it received €8.6bn in royalties from Google Ireland Ltd. A further €232.8m came from Google’s Singapore operation and all but €10.4m was sent to Google Ireland Holdings, which is incorporated in Ireland but controlled in Bermuda.
The UK is Google’s second biggest market and was worth almost $4.9bn in 2012. However, it paid just £11.5m corporate tax in the UK last year. Earlier this year the company was denounced as “devious, calculating and unethical” by Margaret Hodge, chair of the Public Accounts Committee. Google defends its business practices and stresses that although its sales activity takes place in Britain, only its Irish business has the right to close the transaction.
Life & Style blogs
The Last of Us Remastered: Once stilted and melodramatic, Hollywood is giving acting in video games a makeover
Ebola outbreak: Why has a disease that's only ever killed 2,000 people captivated the darkest side of our imagination?
Government backs massive new £300m gene sequencing project
National Orgasm Day: Don't get caught up on climaxing
'iPhone Slow': Do Apple's smartphones get slower when a new one is launched?
The secret report that helps Israel hide facts
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
- 1 Pope Francis issues top 10 tips for happiness
- 2 Disney heiress Abigail disowns her share of family profits in West Bank company
- 3 The secret report that helps Israel hide facts
- 4 Now diplomacy has failed, boycotting Israel might be the only way we can protect the people of Gaza
- 5 Israel's propaganda machine is finally starting to misfire
- < Previous
- Next >
iJobs Gadgets & Tech
£18000 - £25000 per annum + Commission: SThree: Computer Futures are currently...
£18000 - £27000 per annum + Commission: SThree: Sales - Trainee Recruitment Co...
£18000 - £23000 per annum + Commission: SThree: Progressive Recruitment are cu...
£18000 - £23000 per annum + Commission: SThree: Huxley Associates are currentl...