Former Google employee confirms UK company tax fraud
Google is at the center of scandal in the UK, TechCrunch writes . The company is accused of tax fraud: supposedly its London office was engaged in advertising sales and accordingly had to pay taxes in Britain, while Google claims that the Dublin office was engaged in advertising transactions. In Ireland, the income tax is almost half that in Britain.
Unfortunately for Google, Barney Jones suddenly appeared in the business, who worked for the company from 2004 to 2006. He stated that he possesses evidence that the London office was still engaged in advertising sales, and was ready to transfer 100,000 letters and documents to Her Majesty's Tax and Customs Service.
Jones was asked to comment on testimony from Google Vice President Matt Brittin to the State Budget Committee last week. Brittin said that Google employees in London have never entered into promotional transactions, although they have conducted some activities related to sales. Earlier, in November 2012, Brittin said that no one in the London office, in principle, was engaged in sales.
Many global companies place their European headquarters in Ireland, since there is a profit tax of 12.5% (in Britain - 23). That's what Apple does with Facebook, and Google is no exception. However, according to Jones, he has evidence that Google UK sold ads to companies like Amazon, Lloyds TSB, Argos, British Airways and Sony.
Google has so far replied that it can’t comment on documents that it hasn’t seen, especially since these questions relate to cases a decade ago. Google emphasized that none of the charges can alter the fact that Google pays income tax on its activities in the UK and is fully consistent with British law.
However, Google is not the only one who has problems in the UK. Amazon could be the next, as Reuters recently discovered evidence that it also makes a lot of sales through the London branch, despite the fact that they are drawn up on paper through a tax-exempt branch in Luxembourg.