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It will hardly be news to Australians, but Google has avoided paying more than $A4.6 billion in tax in Britain and other countries over the past five years, according to a UK report.The company has reportedly used a network of companies spanning at least five legal jurisdictions including Ireland, Holland and Bermuda in an effort to cut its tax bill.
According to a Sunday Times investigation, Google used accountancy methods, including schemes known as the “double Irish” and “Dutch sandwich” which meant that overseas profits were legally traded between Google subsidiaries that ultimately led to a Caribbean tax haven.
Some UK experts believe Google could be liable for 190 million pounds in corporation tax, which until last month was levied at 28 percent.
Google Australia made a net loss of $3 million in Australia last year, apparently reflecting arrangements under which the company simply provided “services” to offshore companies including Google Ireland, where companies pay much less tax Channel News recently reported.
