Archived

This topic is now archived and is closed to further replies.

key2thecup

Google's tax avoidance is called 'capitalism', says chairman

31 posts in this topic

Reminds me of that story where GE (General Electric) Paid $0.00 in taxes... Mega corporations get tax exemptions, middle class gets the bill. If a normal citizen funneled profits into a overseas nation bank account to avoid paying taxes he/she would be boot-stomped by IRS agents.

Google's tax avoidance is called 'capitalism', says chairman Eric Schmidt

Google chairman Eric Schmidt has insisted that he is "very proud" of the company's tax structure, and said that measures to lower its payments were just "capitalism".

google_2153570b.jpg

Mr Schmidt's comments risk inflaming the row over the amount of tax multinationals pay, after it emerged that Google funnelled $9.8bn of revenues from international subsidiaries into Bermuda last year in order to halve its tax bill.

Mr Schmidt's comments risk inflaming the row over the amount of tax multinationals pay, after it emerged that Google funnelled $9.8bn (£6.07bn) of revenues from international subsidiaries into Bermuda last year in order to halve its tax bill.

However, Mr Schmidt defended the company's legitimate tax arrangements. “We pay lots of taxes; we pay them in the legally prescribed ways,” he told Bloomberg. “I am very proud of the structure that we set up. We did it based on the incentives that the governments offered us to operate.”

“It’s called capitalism,” he said. “We are proudly capitalistic. I’m not confused about this.”

In Britain Vince Cable was unimpressed by Mr Schmidt’s views. The Business Secretary told The Daily Telegraph: “It may well be [capitalism] but it’s certainly not the job of governments to accommodate it.”

A Californian pressure group called Consumer Watchdog wrote to the Senate’s Finance Committee demanding a hearing on Google’s “global tax avoidance strategies”.

Consumer Watchdog’s director John Simpson called for the Committee to schedule a time for Mr Schmidt and Google’s chief executive could “testify under oath and explain their company’s apparent abuse of the tax code to the detriment of all who play fairly.”

Mr Simpson urged the Senate to work with “other countries’ tax authorities” to “put an end to egregious loopholes that allow cynical exploitation by this generation’s Robber Barons.”

“Governments in Europe, many of which have ben targets of Google’s morally bankrupt tax policies, are actively seeking redress,” he wrote. “But this is not a problem that only impacts other countries’ revenues. Google’s tactics strike at the US Treasury as well, forcing the rest of us to make up for the Internet giant’s unwillingness to pay its fair share.”

He added: “What makes Google’s activities so reprehensible is its hypocritical assertion of its corporate motto, 'Don’t Be Evil'.”

Documents filed last month in the Netherlands show that Britain is Google’s second biggest market generating 11pc of its sales, or $4.1bn last year.

But the company paid just £6m in corporation tax. Overall, Google paid a rate of 3.2pc on its overseas earnings, despite generating most of its revenues in high-tax jurdisdictions in Europe.

The company reportedly uses complex tax schemes called the Double Irish and Dutch Sandwich, which take large royalty payments from international subsidiaries and pay tax in low rate regimes.

By channelling its revenues through Bermuda, Google avoided $2bn of global income levies last year.

The tax arrangements add fuel to accusations made by British MPs that Google and other firms including Starbucks and Amazon, have been “immorally” minimising its tax bills.

Matt Brittin, Google’s UK boss, said MPs were blaming companies for a system that they had designed. “Google plays by the rules set by politicians,” he said. “The only people who really have choices are politicians who set the tax rates.”

Last week, Starbucks caved into public pressure and promised to pay £20m to the Treasury over the next two years. However the trigger more criticism of “optional” tax payments.

http://www.telegraph...ic-Schmidt.html

0

Share this post


Link to post
Share on other sites

Yea, but lets not increase taxes for rich corporations. It would scare all the jobs away. What a bunch of BS.

0

Share this post


Link to post
Share on other sites

Of course, this seems obscene to most people, however, I put the blame squarely at the feet of the government that set up the system in the first place, rather than the corporations that take advantage of it.

3

Share this post


Link to post
Share on other sites

Of course, this seems obscene to most people, however, I put the blame squarely at the feet of the government that set up the system in the first place, rather than the corporations that take advantage of it.

1

Share this post


Link to post
Share on other sites

Of course, this seems obscene to most people, however, I put the blame squarely at the feet of the government that set up the system in the first place, rather than the corporations that take advantage of it.

0

Share this post


Link to post
Share on other sites

And what about the rich billionaires like Warren Buffet and Bill Gates that are willing to pay more in taxes?

If these big corporations had any loyalty to the country that made them wealthy, they wouldn't be trying to use every loophole in the tax code to get out of paying taxes. It's just greed at it's finest.

1

Share this post


Link to post
Share on other sites

I don't blame people (or corporations) for using every loophole available to their advantage. It's a dog eat dog world and if you don't use them, your competitor is guaranteed to! The easiest and best solution is to get rid of the loopholes.

0

Share this post


Link to post
Share on other sites

Of course, this seems obscene to most people, however, I put the blame squarely at the feet of the government that set up the system in the first place, rather than the corporations that take advantage of it.

0

Share this post


Link to post
Share on other sites

I don't blame people (or corporations) for using every loophole available to their advantage. It's a dog eat dog world and if you don't use them, your competitor is guaranteed to! The easiest and best solution is to get rid of the loopholes.

0

Share this post


Link to post
Share on other sites

I don't blame people (or corporations) for using every loophole available to their advantage. It's a dog eat dog world and if you don't use them, your competitor is guaranteed to! The easiest and best solution is to get rid of the loopholes.

0

Share this post


Link to post
Share on other sites

I don't blame people (or corporations) for using every loophole available to their advantage. It's a dog eat dog world and if you don't use them, your competitor is guaranteed to! The easiest and best solution is to get rid of the loopholes.

0

Share this post


Link to post
Share on other sites

That was my thought as well. Unfortunately, with the Republicans controlling the House, I don't see any real changes on the horizon...

1

Share this post


Link to post
Share on other sites

Public companies are required by law to do everything they can to maximize shareholder value. While there is grey area here, essentially, they are bound by law to take advantage of the loopholes in order to keep the money. It is exactly capitalism.

Now, the government should be smarter than that and close the loopholes.

1

Share this post


Link to post
Share on other sites

I don't really see Google at fault here, just the politicians caving to lobbyists who create these loopholes.

0

Share this post


Link to post
Share on other sites

Tax avoidance is lawful.

Tax evasion is not.

As long as individuals do not evade taxes and take advantage of tax strategies permitted by law then there should be no issue. It is up to the legislature to make changes if it wishes to make such practises unlawful.

1

Share this post


Link to post
Share on other sites

Maybe they shouldn't have foreign mega-corporations writing their tax code. Time to fix their inept government.

0

Share this post


Link to post
Share on other sites

And what about the rich billionaires like Warren Buffet and Bill Gates that are willing to pay more in taxes?

0

Share this post


Link to post
Share on other sites

Tax avoidance is lawful.

Tax evasion is not.

As long as individuals do not evade taxes and take advantage of tax strategies permitted by law then there should be no issue. It is up to the legislature to make changes if it wishes to make such practises unlawful.

0

Share this post


Link to post
Share on other sites

Can't really blame Google.

As others have said, it's the laws that need to change.

0

Share this post


Link to post
Share on other sites
He added: “What makes Google’s activities so reprehensible is its hypocritical assertion of its corporate motto, 'Don’t Be Evil'
0

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 members

    No registered users viewing this page.