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!

5 things you didn’t know about cloud backup

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. ®

Gartner critical capabilities for enterprise endpoint backup

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
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?