Google has decided to make a payment of £130 million to settle its taxation dispute with the British government.
Google would soon pay unpaid taxes to the British government. The American search engine company would pay £130 million to the United Kingdom in an effort to draw a line under its long lasting taxation dispute. The company alleged of not paying its share of tax in a number of European states, agreed with Her Majesty’s Revenue and Customs Friday.
The contract, which has followed a 6-year HRMC inquiry into the taxation affairs of a number of large companies, would see the search giant payback taxes since 2005. The OECD has, in recent times, taken against enterprises that have succeeded in moving profits from one jurisdiction to another in an effort to cut down tax bills.
Google established its head office in Ireland, which makes payment of a lower tax rate compared to what it would have paid in Britain. Under the agreement with HRMC, the mapping service provider would be recording more sales revenue in the United Kingdom. It would also be paying a larger amount of tax on that revenue.
The organization made a payment of £20.4 million in the European country despite of the recorded sales at £3.8 billion. Even after being accused by Members of Parliament, the company is not paying enough tax. It has always claimed that it complies with the taxation regulations of every state in which it is conducting its business. The British shadow chancellor said he would demand the agreement’s details from Chancellor George Osborne in the Parliament.
In other news, Wall Street Journal reported that Google has equipped the first train station of India with Wi-Fi free of charge, at least for the time being. The offered Wi-Fi is online now. As part of a tie up with the government of India, local officials and the American technology organization launched the facility at Mumbai Central, a main station in the commercial capital of the country.
The Wi-Fi initiative is taken according to a plan for bringing internet access to 100 Indian railway stations by the end of next year. The Prime Minister of India, Narendra Modi, announced many more in the upcoming years at a time when he visited the United States in September.
The facility is free of charge now, but that can be changed as the business finds ways to make a payment for itself. Around 1 billion people in the second most populated country are unable to access the Internet.
Many people who tried free Wi-Fi at the railway station said they do not normally visit Google.com, though some of them visit YouTube for watching videos.