Search Marketing Company: Miliband joins Google tax scandal argument

May 22, 2013 - Digital State Marketing

The Google offices must be hectic at the moment. Not only is the firm the talk of the search marketing industry following Matt Cutts, Head of Search Spam, stating that an algorithmic update will be taking place in the coming weeks but the giant is also dominating the national news with regards to the companies tax affairs.

At the Digital State Marketing, we have been keeping up to date with the search giant’s tax scandal. The latest developments include Labour leader Ed Miliband declaring that it is wrong for Google to go to such “extraordinary lengths” to avoid paying its taxes.

The MP further emphasised that the search giant has only paid £10m in corporation tax in the UK between 2006 and 2011, despite having revenues of £11.9bn. Mr Miliband aired his views at the Big Tent conference in Hertfordshire where he was invited as a guest.

“I can’t be the only person here who feels disappointed that such a great company as Google, with such great founding principles, would be reduced to arguing that when it employs thousands of people in Britain, makes billions of pounds of revenue in Britain, but pays just a fraction of that tax.”

“So when google does great things for the world, as it does, I applaud you. And when Google goes to extraordinary lengths to avoid paying its taxes, I think it’s wrong.”

However, the Labour leader’s glass is half full as he sees the scandal as having a positive outcome by calling for an international tax reform. Whilst Mr Miliband sees the argument as a wakeup call for the tax affairs of large corporations, he also added that firms need to take responsibility or have their reputations suffer.

“Our society depends on the right messages being sent out from the top. And the reputation of business depends on the most prominent businesses doing the right thing.”

The MP’s comments come days after a whistleblower, who was a previous employee at the search engine, accused the firm of running an “immoral” tax avoidance scheme for the past decade.

To keep up to date with the tax scandal as it unfolds, make sure you regularly check the news section of our website. If you would like more information on search marketing campaigns and the use of PPC, visit the knowledge section of our website or contact our experienced team.