Google UK’s tax scandal

‘Paltry’ £50m offering as profits soar

LABOUR has branded the near £50million in UK corporation tax paid by Google last year “disgusting”.

The US tech giant’s bill compared with a UK turnover of more than £1billion.

Those sales applied to “marketing services” plus research and development. Its total UK sales are a reported £5.7bn.

Accounts for Google UK show it will pay £49.3m corporation tax for the year to June 30, 2017, up from £36.4m the last year but far less than the £160m Sky paid.

But turnover rocketed by £228m to £1.26bn.

Corporation tax is paid on profits, which jumped from £148.8m to more than £200m.

John McDonnell, Labour’s Shadow Chancellor, said: “There will be millions of hard-working people in this country who are struggling to make ends meet, and will look at the paltry amounts these big companies like Google are paying and rightly be disgusted.

“The problem goes to the top of this Government. The Tories’ failure to clamp down on tax avoidance means that large multinational companies are paying what they want, rather than their fair share.”

Google is among US tech firms accused by critics of using clever accounting to limit their tax bills.

Lib Dem Treasury Spokesperson, Baroness Susan Kramer said: “We have to end a regime where companies like Google can shift profits abroad to slash their tax bill.”

Accounts show Google UK’s workforce jumped by 337 to 3,280 last year. They shared £219m in share-based payments which, together with wages and other add-ons, averaged out at £200,000 each.

Google said: “As an international business, we pay the majority of our taxes in our home country, as well as all the taxes due in the UK.”

Publisher Time Out has fallen deeper into the red after making a hefty investment in its digital businesses. The firm said its losses widened to £26.3million in 2017, from £18.8m the previous year.