Feeds

Google: Thanks for the billions in revenue, UK. Here are your taxes, that's ... £11m

But we're spending a mint on our King's Cross sales HQ!

Providing a secure and efficient Helpdesk

Google paid Britain £11.2m in corporation tax in 2012, the company confirmed today.

That's slightly more than the £7.3m the ad giant coughed up in 2011.

But the latest figure, confirmed by Google to The Register this afternoon, will no doubt enrage the search king's critics - including Labour MP and Parliament's Public Accounts Committee chairwoman Margaret Hodge.

That's because Google's British sales offices channel billions of pounds in revenue to its European headquarters in Ireland to legally skirt around Blighty's taxmen. This allows the global web giant to minimise profits that are subject to UK corporation tax, set at 23 per cent.

According to its latest accounts for 2012 - as reported by the Financial Times - Google pulled in pre-tax profits of £36.8m on turnover of £506m in Blighty. During the same 12-month period the year before, the multinational reported a loss before tax of £20.7m on £395.8m of turnover.

Judging by the FT's numbers, Google paid a third of its pre-tax UK profit into the nation's coffers in 2012.

But over in Ireland, revenue climbed by roughly 25 per cent year on year to €15.5bn (£12.95bn) for 2012. The Pink 'Un noted that the multinational company charged its Euro HQ "admin expenses" to the tune of nearly €11bn - including royalties to tax-haven Bermuda where Google Ireland Holdings is registered. That holdings outfit owns the intellectual property used by Google Ireland, we're told.

These charges virtually wiped out profits in Ireland, leaving the Irish wing paying the Emerald Isle's taxmen just €17m in corporation tax in 2012.

The FT reckons the UK accounts for $4.9bn (£3bn) of Google's revenue. Overall, the company paid $358m (£221m, €265m) in foreign taxes on overseas profits of more than $8bn (£4.95bn, €5.9bn) for the year, which translates to an efficient or greedy - depending on where you stand on such matters - corporation tax rate of less than five per cent.

The company has previously defended its tax arrangements in the UK by claiming that it helps the British economy by hiring staff here, who in turn pay taxes to the government. When payroll taxes and VAT are included, Google has claimed its total contribution to the UK last year stood at £156.1m. It has also added that it is spending $1bn (£620m) over the next few years on its new "groundscraper" in London's King's Cross. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.