from Daily Mail:
– Google admits funneling BILLIONS of pounds through Bermuda to avoid tax
– Company has amassed £30billion in profits, with £3billion from the UK
– Firm said to only have a post box numbered 666 on the island
Google funnels billions of pounds through Bermuda to avoid tax, a senior figure at the firm admitted yesterday. In a series of candid comments, Peter Barron also said the company set up its headquarters in Ireland because it had a low level of corporation tax.
And he did not deny the suggestion that the firm amasses its non-US profits in the British overseas territory of Bermuda in the Caribbean to avoid having to pay high rates of corporation tax in America.
Google’s parent company Alphabet is expected to announce today that it has amassed £30billion of profits from non-US sales in Bermuda. Around a tenth of this – £3billion – will be profits generated in the UK.
The intervention by Mr Barron, Google’s vice president for communications, comes after Chancellor George Osborne was attacked for hailing a UK tax settlement with the US technology firm as a ‘major success’ while critics dismissed it as ‘derisory’.
The firm agreed to pay only £130million in back taxes on an estimated £7.2billion of profits over the past decade.
Sajid Javid, the Business Secretary, yesterday admitted the deal with HMRC ‘wasn’t a glorious moment’ and said he agreed with small businesses who told him there was a sense of ‘injustice’ with the deal.
It also emerged yesterday that the Government had ordered Tory MEPs to vote against a proposed EU crackdown on Bermuda, which has a 0 per cent corporation tax rate. Google has no office and no staff on Bermuda. Its presence is said to amount to little more than a plain PO Box – numbered 666.
Appearing on BBC1’s Andrew Marr Show, Mr Barron said it was difficult to work out exactly how much corporation tax a global firm should pay in the UK.
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