Google accused of being 'unethical' over 'devious' attempt to avoid paying tax in UK

Google paid six million pounds in UK corporation tax in 2011, despite generating more than three billion pounds in advertising revenues in this country

ANI London
Last Updated : May 17 2013 | 4:29 PM IST

British MPs have branded Google 'devious, calculating and unethical', accusing the search giant of deliberately subverting its motto, 'don't be evil', in order to pay less tax.

Infuriated members of the House of Commons Public Accounts Committee (PAC) lashed out at the company as one of its most senior executives insisted it was not selling advertising in the UK, but in low-tax Ireland instead.

According to the Independent, the arrangement allowed Google to pay just six million pounds in UK corporation tax in 2011, despite generating more than three billion pounds in advertising revenues in this country.

Margaret Hodge, the committee's chairman, said that the company was using smoke and mirrors to avoid paying tax.

Labour leader Ed Miliband increased the pressure on the company, accusing it of operating a culture of corporate irresponsibility and going to extraordinary lengths to avoid paying tax, the report added.

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: May 17 2013 | 3:43 PM IST

Next Story