Google yesterday announced record British earnings of £3.6billion last year, an increase of £600million on 2012. But the online search giant has yet to disclose how much corporation tax it will pay. It will come under enormous pressure over the figure following fierce criticism over its tax affairs. For 2012, the US multinational paid just £11.6million of tax on an income of £3billion. Fresh storm: Google announced $3.4bn profit for the last quarter of 2013, but its expected tax bill is just £11.2m . It was accused of leaving hard-pressed families and businesses to fund public services such as hospitals and schools. Experts . say Google’s corporation tax bill for 2013 is likely to be much lower . than it should be because the group runs its British operations out of . Ireland. Pretty profits: Google CEO Larry Page called the results 'another great quarter of momentum' ‘On the basis of . Google’s global performance and the share of its profits in the UK we . would expect it to pay more than £200million a year in the UK,’ said tax . accountant Richard Murphy, who helped expose coffee chain Starbucks for . avoiding tax. ‘What we . know is that for the last year it reported, Google declared it paid . just £11million. So the question is on the table – where are the missing . millions?’ Margaret Hodge, . chairman of the Commons Public Accounts Committee urged the Government . to take action. ‘This again shows the scandal where profits are made . from economic activity and yet Google refuses to pay its fair share of . tax,’ she said. Jonathan . Isaby, chief executive of the TaxPayers’ Alliance, said: ‘Ordinary . taxpayers are angry when big international companies take advantage of . the loopholes in our increasingly complicated tax system. ‘But . the fact is, it is the politicians themselves who are responsible for . this by creating a tax code which is hugely complicated and open to . being exploited. ‘The only solution to this is to create a simpler, fairer and more competitive tax system.’ Investment: Google Glass is one of the products that the company is pouring its profits into . Google . employs almost 2,000 people in the UK, the majority of whom negotiate . advertising sales deals. But it books the transactions in Ireland, . allowing it to minimise the tax it pays here. A . company spokesman said yesterday: ‘Like most multinationals we pay the . bulk of our £1.2billion corporate tax bill where our business . originated, in our case the US. That’s a rate of more than 19 per cent, . roughly what a UK-based company would pay. ‘We’re . also a significant contributor to the UK economy, having created over . 2,000 jobs. In 2013 alone we invested more than £300million in property, . and tax related to our UK operations totalled more than £150million.’
Last quarter of 2013 saw profits up from 17 percent compared to 2012 .
Google-owned sites, including YouTube generated revenues of $10.55bn .
2013 saw record sales of $55.5bn, largely thanks to online ad revenue .
Google's Motorola Mobility made $384m operating loss .
Tech giant's expected tax bill is just a tiny fraction of profit at £11.2m .
Google yesterday announced record British earnings of £3.6billion last year, an increase of £600million on 2012. But the online search giant has yet to disclose how much corporation tax it will pay. It will come under enormous pressure over the figure following fierce criticism over its tax affairs. For 2012, the US multinational paid just £11.6million of tax on an income of £3billion. Fresh storm: Google announced $3.4bn profit for the last quarter of 2013, but its expected tax bill is just £11.2m . It was accused of leaving hard-pressed families and businesses to fund public services such as hospitals and schools. Experts . say Google’s corporation tax bill for 2013 is likely to be much lower . than it should be because the group runs its British operations out of . Ireland. Pretty profits: Google CEO Larry Page called the results 'another great quarter of momentum' ‘On the basis of . Google’s global performance and the share of its profits in the UK we . would expect it to pay more than £200million a year in the UK,’ said tax . accountant Richard Murphy, who helped expose coffee chain Starbucks for . avoiding tax. ‘What we . know is that for the last year it reported, Google declared it paid . just £11million. So the question is on the table – where are the missing . millions?’ Margaret Hodge, . chairman of the Commons Public Accounts Committee urged the Government . to take action. ‘This again shows the scandal where profits are made . from economic activity and yet Google refuses to pay its fair share of . tax,’ she said. Jonathan . Isaby, chief executive of the TaxPayers’ Alliance, said: ‘Ordinary . taxpayers are angry when big international companies take advantage of . the loopholes in our increasingly complicated tax system. ‘But . the fact is, it is the politicians themselves who are responsible for . this by creating a tax code which is hugely complicated and open to . being exploited. ‘The only solution to this is to create a simpler, fairer and more competitive tax system.’ Investment: Google Glass is one of the products that the company is pouring its profits into . Google . employs almost 2,000 people in the UK, the majority of whom negotiate . advertising sales deals. But it books the transactions in Ireland, . allowing it to minimise the tax it pays here. A . company spokesman said yesterday: ‘Like most multinationals we pay the . bulk of our £1.2billion corporate tax bill where our business . originated, in our case the US. That’s a rate of more than 19 per cent, . roughly what a UK-based company would pay. ‘We’re . also a significant contributor to the UK economy, having created over . 2,000 jobs. In 2013 alone we invested more than £300million in property, . and tax related to our UK operations totalled more than £150million.’
£600million on 2012. But the online search giant profit for the last quarter of 2013, but its expected tax bill is just £11.2m . It was accused the scandal where profits are made . from only solution to this is to create a simpler,