Google have just become bigger than Microsoft.
Is it surprising when they manage to avoid UK taxes on most of their worldwide profits?
What’s even worse is that they deny us the crumbs from their pitifully small income in the UK. If I remember correctly they had income of £365bn in the UK.
That’s what it said in the Telegraph and I can’t be bothered to check it again.
Search engines are just computer programmes so I figure there’s not much in the way of direct costs to legitimately reduce their profits.
So I calculate that Google have avoided about £100bn of corporation tax in the UK.
Somebody told me they actually had a loss, but that’s clearly avoidance because we need the money more than Ireland do. Eire can just levy a worldwide tax on Guinness and they’ll be fine.
Anyway, enough of my international tax expertise. If you are Irish and read this you might care to make a donation to JTN and repatriate some of that filthy tax haven cash you have.
So Google posted a loss, paid a few million in corporation tax and employed a few computer nerds. Big deal. That £100bn could provide us with sufficient funds to employ 2 million tax inspectors, nurses, traffic wardens, policemen, tax inspectors, nurses, teachers, tax inspectors and civil servants.
That would obliterate unemployment and then I could use Google to look stuff up on the internet again with a clear conscience.
If you work out the rate of corporation tax Google actually paid, it was about minus thirty percent!
Being the biggest company I can think of, I feel this is suitably representative of all companies for calculating the corporate element of tax avoidance.
This gives a corporation tax gap of £72bn in 2011, £100bn of which relates to Google. So Google are avoiding more than the tax gap itself!
This is beyond immoral. Its time we taxed the internet properly in the UK. After all, we invented it.
For this reason I am drafting a bill to send to HM Treasury entitled the Taxation of Internet Transactions, Technologies, Industries, Enterprises and Services Bill.
I hope you will support it. I do not expect the coalition government to as they are clearly not serious about tackling tax avoidance.