Google boss defends controversial UK tax bill
Figures cited by Conservative MP Charlie Elphicke show Google paid only £3.4 million ($5.1 million) in British corporation tax in 2011 on revenues totalling about £2.5 billion, sparking fury in austerity-hit Britain.
But Google's executive chairman Eric Schmidt told BBC Radio 4's World at One program on Monday that the company had not acted illegally and had contributed significantly to Britain's economic growth. Defending the company's tax bill, he said: "Of course that omits the fact that we also hire more than 2000 employees and are investing heavily in Britain.
"We empower literally billions of pounds of start-ups through our advertising network and so forth. And we're a key part of the electronic commerce expansion of Britain which is driving a lot of economic growth for the country."
Mr Schmidt urged critics to consider the "totality" of the company's contribution to the economy. "The fact of the matter is these are the way taxes are done globally," he said. "I think the most important thing to say about our taxes is that we fully comply with the law."
Google has come under closer scrutiny in several European nations where cash-strapped governments are wary of being shortchanged on tax revenue. British MPs last year accused the company of being "immoral" during a committee grilling of Matt Brittin, chief executive of Google UK.
Frequently Asked Questions about this Article…
The controversy centers on figures cited by Conservative MP Charlie Elphicke showing Google paid only £3.4 million in British corporation tax in 2011 on about £2.5 billion of UK revenues, prompting public and political anger over whether the company is paying its fair share.
According to figures mentioned in the article, Google paid £3.4 million (about $5.1 million) in British corporation tax in 2011 on roughly £2.5 billion of revenues.
Eric Schmidt, Google's executive chairman, told BBC Radio 4 that Google has not acted illegally, complies with the law, and that critics should consider the company's broader contributions—such as hiring more than 2,000 employees, heavy investment in Britain, and support for startups through its advertising network.
Conservative MP Charlie Elphicke cited the tax figures, and British MPs accused Google of being "immoral" in committee questioning of Matt Brittin, the chief executive of Google UK. Eric Schmidt publicly defended the company on BBC Radio 4.
No. The article reports that Eric Schmidt insisted Google had not acted illegally and that the company fully complies with existing tax laws, while acknowledging political criticism over its tax bill.
Google says it hires more than 2,000 people in Britain, is investing heavily there, empowers billions of pounds of start-ups through its advertising network, and plays a key role in expanding the country's electronic commerce sector—contributions it argues drive economic growth.
The article notes Google has come under closer scrutiny in several European nations, with cash‑strapped governments wary of being shortchanged on tax revenue and pressing for explanations.
Yes. The article reports that British MPs last year accused Google of being "immoral" during a committee grilling of Matt Brittin, reflecting political and public concern about the company's tax arrangements.
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