• Google boss "very proud of our tax avoidance scheme"
    234 replies, posted
[url]http://www.independent.co.uk/news/uk/home-news/google-boss-im-very-proud-of-our-tax-avoidance-scheme-8411974.html[/url] The head of the internet giant Google has defiantly defended his company’s tax avoidance strategy claiming he was “proud” of the steps it had taken to cut its tax bill which were just “capitalism”. In an interview in New York Eric Schmidt, Google’s Chairman, confirmed the company had no intention of paying more to the UK exchequer. Documents filed last month show that Google generated around £2.5 billion in UK sales last year but paid just £6m in corporation tax. The Californian based search giant has also been revealed to have sheltered nearly $10bn of its revenues in Bermuda allowing it to avoid some $2bn in worldwide income taxes in 2011. But Mr Schmidt said such schemes were legitimate and the company paid taxes “in the legally prescribed ways”. “I am very proud of the structure that we set up. We did it based on the incentives that the governments offered us to operate,” he said. The Silicon Valley boss went on to suggest that Google would not turn down the opportunity to draw on the big savings allowed under the law in the countries it operates in: “It’s called capitalism. We are proudly capitalistic. I’m not confused about this.” He also ruled out following Starbucks in voluntarily handing more money over to the UK Government. “There are lots of benefits to [being in Britain],” he said. “It's very good for us, but to go back to shareholders and say, 'We looked at 200 countries but felt sorry for those British people so we want to [pay them more]', there is probably some law against doing that.” Mr Schmidt’s defiant stance is unlikely to find favour on either side of the Atlantic with both the American and European Governments searching to find ways of forcing “stateless” internet companies such as Google to pay more tax. The issue will be raised by George Osborne when Britain takes over the chairmanship of the G8 and will also be investigated by the Organisation for Economic Co-operation and Development (OECD). Last week the Chancellor said he was committed to “leading the international effort” to prevent international companies transferring profits away from major economies, including Britain, to tax havens. “We will put more resources into ensuring multi-national companies pay their proper share of taxes,” he said. “With Germany and now France, we have asked the OECD to take this work forward and we will make it an important priority of our G8 Presidency next year.” Tonight Margaret Hodge, chairman of the powerful House of Commons Public Accounts Committee, which recently cross examined Google UK on its tax affairs said Mr Schmidt should be ashamed rather than proud of his company’s tax bill. “For Eric Schmidt to say that he is ‘proud’ of his company’s approach to paying tax is arrogant, out of touch and an insult to his customers here in the UK,” she said. “Ordinary people who pay their taxes unquestioningly are sick and tired of seeing hugely profitable global companies like Google use every trick in the book to get out of contributing their fair share. Google should recognise its obligations to countries like the UK from which it derives such huge benefits, and pay proper corporation tax on the profits it makes from economic activity here. It should be ashamed, not proud, to do anything less. ”
That really does take the piss.
I await the Google fanboys.
"Yeah well it's all technically legal so :smug:" is the worst shit ever, like when MPs tried to pull it during the expenses scandal
Your products and customer support may be great Google, but come on.
[QUOTE=soccerskyman;38817589]Your products and customer support may be great Google, but come on.[/QUOTE] Google doesn't really have any customer support tbh
more money more youtube redesigns
Makes sense, I'm proud when I spend less money than I could on something too. That said it's still a bit of a dick move.
That's kind of a dick thing to do...
"Don't be evil". Things sure have changed.
I don't get why this makes people angry. Why would you pay more tax than you need to? If the govt don't like it then they should change the tax law so they have no other choice. No-one is voluntarily going to pay more tax than they have to. It's an accountant's main job to minimize the amount of tax that you pay. If your morals should dictate the amount of tax you pay then why not get rid of the whole tax law all together and let people pay what they morally think they should?
Don't hate the player hate the game [editline]13th December 2012[/editline] also, garry confirmed for Bermuda bank accounts
[QUOTE=garry;38817624]I don't get why this makes people angry. Why would you pay more tax than you need to? If the govt don't like it then they should change the tax law so they have no other choice. No-one is voluntarily going to pay more tax than they have to. It's an accountant's main job to minimize the amount of tax that you pay. If your morals should dictate the amount of tax you pay then why not get rid of the whole tax law all together and let people pay what they morally think they should?[/QUOTE] Because everyone in the UK is poor but Google are keeping every penny they can from them. You wouldn't understand, you're a millionaire.
[QUOTE=Scot;38817663]Because everyone in the UK is poor but Google are keeping every penny they can from them. You wouldn't understand, you're a millionaire.[/QUOTE] I am really stumped if you are being sarcastic or painfully retarded
[QUOTE=Aman VII;38817690]I am really stumped if you are being sarcastic or painfully retarded[/QUOTE] Both.
Good, deprive them of as much as possible. Maybe they will stop bombing countries and starting/assisting with illegal wars that way
I'm guessing his company's shareholders would pretty much lynch him if he willingly paid more tax. UK's gotta close some loopholes. Or bomb Bermuda.
[QUOTE=Sgt Doom;38817728]I'm guessing his company's shareholders would pretty much lynch him if he willingly paid more tax. UK's gotta close some loopholes. Or bomb Bermuda.[/QUOTE] At this point, every poor and middle class human being wants to see Bermuda burn.
[QUOTE=garry;38817624]I don't get why this makes people angry. Why would you pay more tax than you need to? If the govt don't like it then they should change the tax law so they have no other choice. No-one is voluntarily going to pay more tax than they have to. It's an accountant's main job to minimize the amount of tax that you pay. If your morals should dictate the amount of tax you pay then why not get rid of the whole tax law all together and let people pay what they morally think they should?[/QUOTE] People like me get pissed because when large corporations evade paying their rightful dues, the gap that has to get paid for doesn't disappear; it probably gets thrown onto the middle-class in the end. Somebody has to pay for that missing gap of taxation either way, and I'd rather not be the one paying just because the multi-national corporation isn't. Loopholes like these should be fixed. I pulled a lot of this info out of my opinionated, biased ass so feel free to provide sources if I'm incorrect. You did make a good point however as I can't really blame corporations for not paying more than is legally necessary. I suppose this is more of a moral issue though.
[QUOTE=garry;38817624]I don't get why this makes people angry. Why would you pay more tax than you need to? If the govt don't like it then they should change the tax law so they have no other choice. No-one is voluntarily going to pay more tax than they have to. It's an accountant's main job to minimize the amount of tax that you pay. If your morals should dictate the amount of tax you pay then why not get rid of the whole tax law all together and let people pay what they morally think they should?[/QUOTE] Exactly, I'm maybe pulling it out of my ass but I'm think many large companies does things like this. I know IKEA escapes the enormous Swedish tax by moving money around to "skatteparadiser" (tax paradise? basically countries with low taxes or no taxes).
[QUOTE=garry;38817624]I don't get why this makes people angry. Why would you pay more tax than you need to? If the govt don't like it then they should change the tax law so they have no other choice. No-one is voluntarily going to pay more tax than they have to. It's an accountant's main job to minimize the amount of tax that you pay. If your morals should dictate the amount of tax you pay then why not get rid of the whole tax law all together and let people pay what they morally think they should?[/QUOTE] This is basically spot on. Even though its stupid that they avoid all these taxes, its really all down to the government to tighten up tax laws and make what they are doing to avoid the taxes illegal. [QUOTE=Swebonny;38817758]Exactly, I'm maybe pulling it out of my ass but I'm think many large companies does things like this. I know IKEA escapes the enormous Swedish tax by moving money around to "skatteparadiser" (tax paradise? basically countries with low taxes or no taxes).[/QUOTE] You'll find any big corporation does this, when their bottom line is making money no matter what, they aren't going to pass up loopholes to avoid taxes because of morals. A month or so ago big names from Google, Amazon, Starbucks etc were dragged in for a meeting because of investigations into their tax payments, Starbucks has only just released a press statement saying it is going to review its stance on paying tax, after it [B]has paid zero tax in three years.[/B] *EDIT* Also: [media]http://www.youtube.com/watch?v=DxaLrW49awc[/media]
[QUOTE=garry;38817624]I don't get why this makes people angry. Why would you pay more tax than you need to? If the govt don't like it then they should change the tax law so they have no other choice. No-one is voluntarily going to pay more tax than they have to. It's an accountant's main job to minimize the amount of tax that you pay. If your morals should dictate the amount of tax you pay then why not get rid of the whole tax law all together and let people pay what they morally think they should?[/QUOTE] because he's being so smug about it and we're in a recession, which need s we need the money. Talk to the Republicans on why the tax rates haven't gone up for corporations yet
At first I thought that the title told you to google "boss very proud of our tax avoidance scheme". :v:
what I don't like is they're basically taking money out of the country to feed America.
It's not that hard to avoid tax, my mum does it all the time with her business.
[QUOTE=Swebonny;38817758]Exactly, I'm maybe pulling it out of my ass but I'm think many large companies does things like this. I know IKEA escapes the enormous Swedish tax by moving money around to "skatteparadiser" (tax paradise? basically countries with low taxes or no taxes).[/QUOTE] Not to mention obvious tax front companies listed as normal subsidiary companies. The accountant's have gotten more creative and smarter, but the laws regarding taxes hasn't kept up pace. That said, legal tax evading like mentioned are a grade-a dick thing to-do [B]ESPECIALLY[/B] during a recession. That said I even know know the most versatile tax loopholes myself, due to a family member working with accountants on a daily basis. One common way for a average person to avoid tax, is to channel all your money through a shell company where you're careful at keeping the budget [B]JUST[/B] above the red line.
One good trick is to keep most of your money in a business account, that way it doesn't get counted as residential income, so then you just transfer over to your own personal account in small quantities and keep under the income tax thresholds.
Seems like a recession is a perfect time for a business to reduce the amount of tax it pays?
[QUOTE=Vasili;38817838]what I don't like is they're basically taking money out of the country to feed America.[/QUOTE] No they're not :v: AAHAHAHAHAHAHA. They're funneling it somewhere, we don't know where its going.
I don't see the logic in some people when they say corporate taxes should be sky rocket high and they expect large businesses and companies to not care. Obviously you will scare the businesses away since they can just as easily for probably less than the taxes you end up charging them pack up shop and locate to a place with more reasonable taxes in their eyes
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