Google accused of UK tax avoidance

LONDON - Google is one of many companies accused of tax avoidance after it was revealed it paid just £600,000 in UK corporation tax, despite UK revenues of more than £1.25 billion.

Google...faces tax avoidance allegation
Google...faces tax avoidance allegation

The search engine could have faced taxes of more than £100 million in the UK, but it avoided much tax by channelling revenues through Ireland, according to yesterday's The Sunday Times.

More than 90 per cent of Google’s UK revenues are channelled through Ireland, where corporation tax is levied at 12.5 per cent, compared with 28 per cent in Britain, according to the accountant Richard Murphy, who investigated Google’s British, Irish and US accounts for the newspaper.