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"
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.
