Google pays $71 million tax in Britain on 2012 sales of $6.9 billion
LONDON (REUTERS) - Google, which has been grilled twice in the past year by a UK parliamentary committee over its tax practices, had a UK tax bill of 35 million pounds (S$71 million) in 2012, on sales of US$5.5 billion (S$6.91 billion) to British customers, its accounts showed.
The Internet search giant paid a tax rate of 2.6 per cent on US$8.1 billion in non-US income in 2012, because it channelled almost all of its overseas profits to a subsidiary in Bermuda which levies no corporate income tax, the group's accounts show.
Corporate tax avoidance has risen to the top of the international agenda in the past year with the G20 and G8 groups of leading economies promising to get to grips with the growing practice of companies diverting profits from where they are earned and into tax havens.
Google said it follows all tax rules in every country where it operates and that it does not pay much tax in Britain because its profits are not generated by its UK employees.