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.
He 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.”
Conclusion: For Eric Schmidt to say that he is ‘proud’ of his company’s
approach to paying tax is arrogant and an insult to his customers in the UK. Ordinary
people who pay their taxes 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. It is unethical for Google to be doing this
however, in their defence it is not against the law. Not paying tax is against
the law but tax avoidance is not against the law and I believe that the
government should find ways of forcing internet
companies such as Google and
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