Google’s Tax Bill Rises To £50m

Google will pay nearly £50m in tax to the Treasury this year.

The technology giant’s annual accounts show that the company will pay corporation taxes of £49.3m on UK profits of £202.4m.

Although the tax figure is the highest the company has paid – and up on the £36.4m it paid last year – it will be likely to reignite the debate about taxation and digital firms.

The total value of Google’s sales in the UK is about £5.7bn a year.

It only makes a profit on a small proportion of that activity because most of the intellectual value of its business – the software engineering – is created in America, where Google pays the vast bulk of its taxes.

Google UK also operates as a marketing and sales arm of its European operation which is headquartered in Dublin, where corporation taxes are lower.

It pays a substantial “administration fee” to its European parent to operate across Britain.

“As an international business, we pay the majority of our taxes in our home country, as well as all the taxes due in the UK,” a spokesman said.

“We are investing significantly in the UK, including starting work on new offices in King’s Cross [London] for 7,000 staff.”

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