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Google’s UK Tax Bill Jumps From £50m To £200m

Google’s UK tax bill jumps from £50m to £200m

The amount of tax Google paid to the Treasury has risen from £50m to £200m over the past 18 months, according to data released in late December.

Its turnover increased from £1.8 billion to £3.4 billion with profits of £896 million, up from £226 million in June 2020.

The numbers cover a year and a half after the company moved the reporting period from late June.

Google opened its first office in the UK in 2003, where employees are mainly involved in research, development and marketing. It is building a large facility in Kings Cross, London, which will house 4,000 employees in a 330-meter-wide horizontal skyscraper. He bought the land in 2013 for £290 million.

This year the company spent £788 million to buy Central St Giles' complex in London's West End, where it has leased office space since 2012.

As of June 2020, it had an additional 577 employees, including 2,275 employees in sales and marketing, 2,412 in research and development, and more than 1,000 employees in administration and management.

Along with other American tech giants, the company has been repeatedly criticized for not paying enough taxes in the UK. Google's European office is located in Dublin, where taxes are low.

A Google representative said: “Over the past decade, our effective global tax rate has been approximately 20% less of our earnings than the average legal tax rate. We have long supported OECD efforts to modernize international tax rules to achieve a system in which Allocate more tax rights to countries in which goods and services are consumed.”

The United Kingdom introduced a tax on digital services in 2020, set at 2% of the total revenue of major digital companies from users in the country. Last year, the Organization for Economic Cooperation and Development signed an agreement to reform the international tax system, which will replace that system next year.

The deal was sealed after about 140 countries agreed to new rules for international corporate taxation. The reforms are aimed at ensuring that multinational companies pay an additional $100 billion in taxes annually and transfer most of their debt to the countries where they earn their income.

Under the new framework, companies will pay a minimum of 15% of the global tax rate. The goal is to end cross-border competition as intellectual property is transferred to tax havens and reported profits in low-tax jurisdictions.

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The UK's Google tax bill has risen from £50m to £200m

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