A survey carried out by marketing professionals magazine ‘The Drum’ has exposed Google’s tax practices in Britain with some of the company’s clients have questioned its assertion that that its UK team is not engaged in advertising sales.
Google says its UK team does not sell advertising but offers sales and marketing support to those who deal with its Dublin office.
The company is alleged to have paid just £10m tax in the UK on revenues of £11.5bn between 2006 and 2011.
The Drum’s survey follows a Reuters investigation of Google’s activities which highlighted inconsistencies in the company’s tax arrangements in the UK.
The news agency said it interviewed dozen of Google customers and former staff, as well as examined LinkedIn profiles for over 150 Google staff based in London, which showed that the company made sales in the UK.
In The Drum’s survey, about 80% of respondents said they dealt with London when buying Google advertising, while about 14% said they used Dublin office.
According to the survey, 80% of respondents consider sales the primary role of Google’s London advertising team while 17% said it was support.
In the survey, 76% said they considered they were buying from Google’s London team when they deal with them while 17% said they were receiving general advice in order to buy through Dublin.
83% of respondents said Google should pay more tax in the UK while 3% said they shouldn’t and 14% were undecided.
Earlier this month, it was revealed that Google and its auditor Ernst & Young will be asked again to be present before a British parliament committee to clarify its tax arrangements in the UK.
