Employees in Ireland receive less than half of the wages received by those working for Google in London.
Google has entered into another controversy in Europe. Employees working at Google Ireland, the search giant’s sales hub of the European region, earn less than 50% of the average wage $232227, which their colleagues are earning in London despite the sales team in Britain only offers supporting role to their counterparts in Ireland.
The public accounts committee of the Parliament will grill Google executives in the coming week over the methods used by them for continuing within their controversial Irish taxation structures while facing promises repeatedly made by political leaders to end such arrangements.
The relations between sales teams of Google in Dublin and London would probably be at the center of discussion in the questioning by the Members of Parliaments. In 2015, Google Ireland recorded sales worth $7.26 billion from British advertisers, but did not pay tax to the United Kingdom. The controversial corporate structure of the American search engine developer indicates that the subsidiary in UK offers marketing facilities to Google Ireland.
In the meantime, UK users exclusively purchase advertising from the Ireland-based company. Despite of the workforce’s expertise in Google Ireland, latest accounts showed that in 2014, business paid total wages of $271.73 million to 2577 workers, paying an average wage of $105340.15.
In 2014, three directors from Google Ireland were paid a cumulative amount of around $1.83 million, despite of running a business with sales revenue of $20.38 billion, contributing to approximately one third of global sales of the search engine operator.
On Thursday, the sales head of Europe, Matt Brittin, will appear before the Parliament’s public accounts to answer questions regarding the Google’s taxation affairs for the third time. Members of Parliament (MPs) are particularly interested in asking questions about a $185.6 taxation settlement reached by the company with HRMC in January, ending disputes regarding underpaid taxes in the past decade.
Critics suggested that the Californian organization, which plans to establish a $1.45 office in London, succeeded in receiving a “sweet heart deal”.
Three years ago, Matt told the committee that he understood how public, MPs and some huge advertisers advertising on Google – and even some of the British staff employed by Google – might have felt regarding the negotiations and closing of sales in the United Kingdom. Nevertheless, they were making a mistake, he stated.
Jim Harra, who is responsible for heading business taxation at HM Revenue & Customs, will also appear along with outgoing chief executive of Her Majesty Revenue & Customs, Lin Home, before the MPs. Both have previously been questioned regarding the tax structures of the technology giant.
MPs are interested in knowing why British chancellor’s new diverted profits tax ( DPT) designed for stopping certain tech companies from diverting profits out of Britain, had not been able to bring an end to the practice by Google to rout sales of Britain through Ireland.