Google chairman Eric Schmidt has said the company paid £6 million in UK corporation tax in 2011. This complied with the law and he said Google was acting no differently that other firms.
Recent news has highlighted that companies such as Google and Amazon aren’t paying as much tax as they should be. MP’s on the Public Accounts Committee have said that companies such as Starbucks, Google and Amazon are ‘using the letter of tax laws’ to ‘immorally minimise their tax obligations’.
Schmidt spoke to BBC Radio 4’s World At One on Sunday to say that the focus on their tax bill has omitted ‘the fact that we also hire more than 2,000 people and are investing heavily in Britain.’
He added ‘We empower literally billions of pounds of start-ups through our advertising network and so forth. And we’re a key part of the electronic commerce expansion of Britain which is driving a lot of economic growth for the country.’
He said that people should consider their ‘totality’ of their contribution to the economy.
Schmidt said to the BBC ‘The fact of the matter is these are the way taxes are done globally. The same is true for British firms operating in the US, for example.
‘I think the most important thing to say about our taxes is that we fully comply with the law and we’ll obviously, should the law change, we’ll comply with that as well.’
Kitguru says: UK laws need to tighter if these companies are to pay what is considered the ‘right amount’.