Search Marketing: Google under fire for tax evasion

April 23, 2013 - Digital State Marketing

Apart from being the talk of the search marketing world, Google related topics also seem to be a hot topic in the larger media arena recently. From the release of Google Glass to issuing penalties to national companies, it seems the press are eager to print about the UK’s largest search engine.

Earlier this year MP’s criticised the tax arrangements of multinational firms, including Google. The Public Accounts Committee has stated that the companies are “using the letter of tax laws both nationally and internationally to immorally minimize their tax obligations.” The firm was under strict scrutiny for paying just £6million in UK corporation tax in 2011.

Googles executive chairman, Eric Schmidt has hit back at the accusations and defended the search engines tax affairs. In an interview on Radio 4’s World At One, Mr Schmidt argued that the firm was playing a key role in the UK’s high tech growth as well as employing more than 2,000 people and investing heavily in Britain. He also went on to state that the search corporation’s behaviour reflected the way that all big international companies manage their taxes.

“I think the most important thing to say about our taxes is that we fully comply with the law and we’ll obviously, should the law change, comply with that as well.” He said.

However Public Accounts Committee chairman, Margaret Hodge, told him: “We are not accusing you of being illegal, we are accusing you of being immoral.”

At the Digital State Marketing, we expect that this won’t be the last we hear of this interesting topic and we will keep you informed of any changes. For more search marketing related news, visit our website.