Comment by bootload | Hacker News Reader

Comment by bootload | Hacker News Reader

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"Despite the UK being one of Google's biggest markets, it paid £20.4m in taxes in 2013."

Squeeze the SOBs. This was the response from Google Australia boss, Maile Carnegie about tax:

"called before the Senate tax inquiry to answer accusations that the company was dodging tax here after revelations its Australian arm paid $7.1 million in tax in 2013 on a profit of $46.5 million and revenue of $357.7 million." [0]

and then:

"criticism of the company’s tax bill was understandable, but failed to recognise the level of investment the company made in the local economy. She pointed to the presence of 450 Google engineers in Australia, who she said conducted work that could easily be done more cheaply elsewhere." [1]

[0] "Google Australia boss Maile Carnegie: People, get ready" ~ http://www.theaustralian.com.au/life/weekend-australian-maga...

[1] "Google boss calls for simpler, transparent global tax system" ~ http://www.afr.com/technology/technology-companies/google/go...

They paid taxes but they were in Ireland likely. This is something you agreed to as legal when the UK signed one of the EU treaties.

If you disagree with that (and I totally understand why you would), that is the root cause, and that is the treaty (aka law) that needs to be revoked.

Alternatively, the UK could choose to have a lower tax rate than Ireland, in which case all of the EU tax bills would flow there instead of Ireland for multinationals. That said, you can see how that would end up being a race for the bottom.

Its not completely that simple but it's pretty much that simple.

They won't have paid taxes in Ireland. that's the point.

Like Apple google negotiated a deal that only Ireland profits are taxed in Ireland but European profits are declared there but are untaxed.

The UK could reduce it's tax rate to 1% and they'd still have their Irish tax structure as that gives them 0% across all of Europe.

It's hard to go lower than 0.

Why are European profits declared in Ireland untaxed? I don't understand that part

You don't declare profits. You just invoice or lend between international elements of your group with timing such that at the end of year/quarter/reporting period in each jurisdiction you've lost money or made none.

A lot of money vanishes this way, a lot of money is invented this way.

Ahh. That's smart. I guess that's related to the other strategy I've heard of national HQs charging each other made-up sums in 'branding fees' to use the company logo.

Part of the EU rules is that it is a single market. However the Irish deal treats it as individual markets from the point of view of the Irish government and soobpy collects taxes on the Irish generated part.

That's why Europe needs to commit to either "the ever greater union" (at least in a fiscal sense) or kind of bin it off altogether and engage in the race to the bottom like you say

What are you talking about? These treaties exist to give a fair treatment to companies and individuals that do not cheat on the scale.

What disingenuous horseshit. Google hires engineers in Australia because the engineers it needs are in places like Australia, London and Silicon Valley. It's rot to present this as some sort of public benefit when it's pure self-interest on the part of Google.

Google in Australia has benefitted from the security and institutions of Australian society, thus it should contribute to them.

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