London - The boss of Google says he is “perplexed” by public anger at the firm’s meagre tax contribution, claiming it is politicians’ fault that it does not pay more.
The California-based internet giant paid £10-million in UK corporation tax between 2006 and 2011, despite revenues of £11.9-billion.
But Eric Schmidt, its executive chairman, said: “What we are doing is legal. I’m rather perplexed by this debate.
“I view taxes as not optional. You should pay the taxes that are legally required.” He laid the blame for Google’s low contribution at the door of politicians, suggesting they had not legislated for the modern, globalised economy.
“If the British system changes the tax laws, we will comply,” Mr Schmidt said. “If the taxes go up, we will pay more; if they go down, we will pay less. That is a political decision.”
But Richard Murphy, of the Tax Justice Network, said Mr Schmidt was side-stepping the law by routing Google’s UK sales through low-tax Ireland. “If we change it, he’ll try to get around that law,” Mr Murphy said.
He added that Mr Schmidt’s comments proved the need for a “general anti-avoidance rule” to tackle attempts to lower tax bills artificially.
Margaret Hodge, chairperson of the parliamentary public accounts committee, recently suggested Google failed to live by its motto ‘Don’t be evil’, saying: “I think you do do evil in that you use smoke and mirrors to avoid paying tax.” - Daily Mail