TECH giant Google has faced criticism after it emerged it paid just £44.3 million in corporation tax last year despite reporting revenues of £1.6 billion.
According to the firm’s filing with Companies House for the year to June 30, 2019, Google saw a drop in profits which led to the tax payment being down a third on that paid the previous year (£66m).
That came after a hiring spree saw 800 workers recruited – and the company gave out £1bn in pay and bonuses to its 4439 staff.
READ MORE: General Election: Tories in U-turn over corporation tax cut
Google’s wage bill was up 25% in the last year according to the accounts, with £441m worth of shares given out in bonuses.
Paul Monaghan, chief executive of Fair Tax Mark, said: “Once again, it seems like Google are writing their own rules in the UK. Income is up but corporation tax charges are down. That’s before we get to the puzzle of how they continue to get away with booking so little of their UK advertising revenue through their UK subsidiary.”
The company’s tax affairs have long been a source of controversy, with suggestions they have avoided tax by moving money around.
The company’s UK operation is mainly used for the marketing and sales division of its European operation – which is headed in Dublin where taxes are lower.
The UK Government had proposed a 2% digital service tax in an attempt to crack down on profits and cash being shifted to countries with low tax levels.
If introduced Google would see 2% of its £1.6bn sales taxed – an extra £32m.
A Google spokeswoman said: "We pay more than 80% of our corporate income tax in the US, which is our home country. We also pay all of the tax that is due in the UK. We strongly support the OECD’s work to develop a new international framework for how multinational companies are taxed."
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