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Google's UK tax structure in question

Today, Reuters released two articles about Google and the company’s tax structure in the UK:

From 2006 to 2011, Google generated $18 billion in revenues from the UK and paid just $16 million in taxes. Google defends its low tax bills by saying it does not have a British tax presence, because its sales to the UK are made by staff in Ireland. A Reuters examination of Google’s activities raises questions about that. Our reporting reveals many employee roles located in Britain that actually target, negotiate and close sales of Google’s advertising products to its customers. Also, executives from Google Inc. and its auditor Ernst & Young will be called again to a British parliament committee to testify after the Reuters investigation highlighted inconsistencies in the way Google portrays its activities in Britain, the committee’s chairwoman tells us.

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