Former employee accuses Google of tax avoidance
A former employee of global internet search giant, Google has accused the company of adopting measures that cheated the taxpayers for hundreds of millions of pounds.
Barney Jones said that Google has been using a tax avoidance scheme for the previous decade, which he described as immoral. Jones, who worked with the company between 2002 and 2006, accused the company through a media outlet.
“The real victims are ordinary taxpayers in Britain who are being cheated by Google. They don't have the means to hire accountants to pretend they make their money in Ireland, Bermuda or the British Virgin Islands. What Google is doing is immoral,” he said.
MPs in the UK have described Google’s tax operation as "devious, calculated and unethical". Matt Brittin, Google’s vice president was present before the Public Accounts Committee (PAC) on Thursday after it was found that the company paid just £6m in British corporation tax in 2011. The company generated revenues of £3 billion during the year but claimed that the UK transactions are channelled through Ireland, where the tax rate remains much lower than the UK.
Google executive chairman Eric Schmidt defended his company and said that Google always tries to do the right thing. He also said that the international tax laws could gain from reforms.