The Sunday Times published a story yesterday claiming that Google was avoiding UK taxes by channeling its revenue through Ireland, where the tax rate is much lower.
According to the story, the Internet giant took in £1.25 billion in revenue in the UK, but paid only £600,000 in taxes. Instead, it’s claimed, the company channeled around 90% of its revenue through Ireland, where the tax rate is just 12.5%, as opposed to 28% in the UK. On top of that, Google reportedly avoided a further £119 million in taxes in Ireland because its Irish subsidiary is owned by one of two companies Google has set up in Bermuda, which is a tax haven.
