13 December 2012

Pay Taxes? Hahahahahahah!

Eric Shit the head of the internet giant Google has defiantly defended his company’s tax avoidance strategy claiming he was “proud” of the steps it had taken to cut its tax bill which were just “capitalism”.

In an interview in New York Eric Schit, Google’s Chairman, confirmed the company had no intention of paying more to the UK exchequer. Documents filed last month show that Google generated around £2.5 billion in UK sales last year but paid just £6m in corporation tax.

The Californian based search giant has also been revealed to have sheltered nearly $10bn of its revenues in Bermuda allowing it to avoid some $2bn in worldwide income taxes in 2011.
But Mr Schmidt said such schemes were legitimate and the company paid taxes “in the legally prescribed ways”.

“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,” he said. The Silicon Valley boss went on to suggest that Google would not turn down the opportunity to draw on the big savings allowed under the law in the countries it operates in: “It’s called capitalism. We are proudly capitalistic. I’m not confused about this.”

He also ruled out following Starbucks in voluntarily handing more money over to the UK Government. “There are lots of benefits to being in Britain,” he said. “It's very good for us since your government has let us get away with robbery for years, but to go back to shareholders and say, 'We looked at 200 countries but felt sorry for those British people so we want to [pay them more', then the shareholders  would lynch me in a hearteat.”

Mr Schmidt’s defiant stance is unlikely to find favour on either side of the Atlantic with both the American and European Governments searching to find ways of forcing “stateless” internet companies such as Google to pay more tax.

The issue will be raised by George Osborne when Britain takes over the chairmanship of the G8 and will also be investigated by the Organisation for Economic Co-operation and Development (OECD).
Last week the Chancellor said he was committed to “leading the international effort” to prevent international companies transferring profits away from major economies, including Britain, to tax havens.

“We will put more resources into ensuring multi-national companies pay their proper share of taxes,” he said. “With Germany and now France, we have asked the OECD to take a firm approach with these companies. We will immediately ask Google and other companies to pay just a little more and if they refuse then we will say pretty please.If that doesn't work well I have no idea what will"

Iknow that Schmidt is not doing anything illealper se but his comments show him to be an arrogant shit.Our governments are no better what with their spineless approach to taxation.Perhaps too many Backers don't want their offshore investments messed around with.


Andrew MacLaren-Scott said...

I think he is right. Everybody is entitled to pay as little tax as they legally must. The government should be criticising and changing its tax laws, not lecturing those people who stay within the law but thus achieve things the government doesn't like.

jams o donnell said...

I agree that the laws are shite when they screw ordinary earners but let the richest get away with minimal tax. The spinelessness of politicians is as bad as the naked arrogance of Schmidt

Andrew MacLaren-Scott said...

I don't see "naked arrogance". I see a lovely touch of humour while still seeing that he is absolutely 100% right, and possibly doing us a favour if his "arrogance" can finally get our ridiculous politicians to act. Let's see... to all rich people and companies, we currently say... "We'd really, really appreciate it if you could pay us this big lowvely amount in taxes, but of course we have left it perfectly legal for you to pay hardly anything at all... so which would you prefer to do?"

And a company's primary responsibility is to its shareholders, nobody else, which is as it is and should be in an enterprise economy, provided they obey the law.

SnoopyTheGoon said...

Hm... £6m in corporation tax? I will take that if British government is not interested.

In general, why blame Google only? After all, the tax loopholes were created especially for all the members of oligarchy, starting with the British ones. All of them who have money for expensive accountants and lawyers do it.

Andrew MacLaren-Scott said...

It's an interesting question Snoopy. Do you think the loopholes are "created" deliberately, or are they just discovered by lawyers who are more clever than the people framing our laws? I have no idea, though my insticts always favour "cock up" over "conspiracy" (partly because attempts at conspiracy are generally soon cocked up :) ). But either way, if the government really wanted the loopholes closed they could close them, and if they don't they should stop their sanctimonious preaching. Google does a lot for me for free (best search engine by far, free blogsite, alternative email, so I'm not complaining about Google).

jams o donnell said...

Time to change the law.That needs politicians who are not sineless.

As you can see Don I use google products too.I want o see a proper framework where they and others who make a mint here pay their fair shre of taxes