Google executive chairman, Eric Schmidt, has defended the Internet search giant’s tax avoidance policies in the UK and said the company fully complies with the law.
During an interview with the BBC, Schmidt defended the fact that Google paid corporation tax of just £6m in 2011, even though the company generated annual revenues of £2.5bn in the UK.
Schmidt said his firm invested heavily in the UK and its services boost the economy and Britain has been a very good market for us.
"We empower literally billions of pounds of start-ups through our advertising network and so forth," he said.
"And we’re a key part of the electronic commerce expansion of Britain, which is driving a lot of economic growth for the country."
In November 2012, it was reported that Google, Amazon and Starbucks are being probed by UK lawmakers for using complex accounting methods avoid tax liabilities in the country.
Last year, Schmidt said his company’s approach to corporation tax is just capitalism and that he is very proud of the structure in place.
In 2012, it was reported that Google allegedly shifted $9.8bn in revenues to its Bermuda subsidiary to avoid paying the global income tax of about $2bn in 2011.
