Google’s shrewd marketing and accounting strategy helped it avoid paying $700 million in corporation tax in Britain last year.
Google accounts show the company paid HM Revenue and Customs only $220,770 approx on its earnings of $2.5billion from advertising in Britain last year.
Google managed to avoid paying the millions in taxes in UK because its European headquarters is based in Dublin - and advertising earnings from customers in Britain are funneled through to its Ireland-based subsidiary.
Accountants are saying that if Google’s $2.5billion advertising revenue stayed in UK, it would be subject to corporation tax at 28-30 per cent rather than the 15 per cent levied in Ireland.
In that case Google’s tax bill would have been up to $700million.
