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April 3, 2017

Google tax payments in the UK revealed…and it’s not a lot

Google paid £36.4m in corporation tax for the year ending June 2016.

By CBR Staff Writer

Search engine giant Google said that it has paid £36.4m in corporation tax in the UK for the 12 months ending June 2016.

According to its annual reports, the company earned a revenue of £1.03bn and a pre-tax profit of £149m during that period.

Last year, Google came under fire after its £130m tax settlement with UK authorities. The politicians in the opposition raised concerns over the way the government dealt with the case.

A Google spokesperson was quoted Bloomberg as saying: “As an international business, we pay the majority of our taxes in our home country, as well as all the taxes due in the UK.

“We have recently announced significant new investment in the U.K., including new offices in Kings Cross for 7,000 staff.”

In February 2016, a UK parliamentary committee accused Google of being “disingenuous” with respect to its handling of international tax rules.robot tax

Total employee costs at Google UK dropped by 12% to £541.2m in the last fiscal year ending June 2016, compared to £616.8m compared to the previous 18-month period.

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However, the headcount of the Google’s UK subsidiary increased by 26% to 2,943, while the annual employee salary stood at £183,897 on average.

Shadow Chancellor John McDonnell said that the latest numbers of Google showed that it is not paying a fair share to the exchequer.

McDonnell said: “It is a national disgrace that by paying just £36m in tax Google could have an effective tax rate lower than many working families in our country.

“And it exposes the complacency at the heart of this Tory government, which is allowing this to still continue despite last year’s scandal.”

READ MORE: HMRC investigates UK celeb tax profit made on empty data centres

In November last year, Google confirmed that it will invest £1bn to build a new headquarters in London. The headquarters will be located next to Google’s existing base in King’s Cross, central London.

The project is expected to create 3,000 new jobs by 2020, the BBC reported.

Currently, Google employs nearly 4,000 people in the UK.

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