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Aug 14th, 2012

More on Google’s tax bill

By DavidT

Some members have asked how much tax Google would pay if it weren’t dodging it. But because of the way the company is set up, and how it seems to handle its finances, it’s not always easy to say.

Richard Murphy from the Tax Justice Network has previously commented on the way Google appears to chanel revenue through Ireland and the Bahamas. By sending money offshore Google’s revenue and profit here in the UK falls. That seems to be part of the reason Google recorded a loss in the UK last year.

Murphy’s latest calculations suggest that the £6m in tax Google did pay is a long way from the amount of tax that would be due if Google choose not to use this tax-dodging setup. His estimate is that £218m is “missing”.

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