GOOGLE AND TAX

That this House, noting that Google now has more advertising revenue in the UK than ITV, is concerned to find that in 2008 it generated 1.25 billion in revenue in the UK but paid only 600,000 in UK corporation tax because it declared a loss of 4.5 million in its UK operations even though its overall pre-tax profit is 34.2 per cent. of its turnover; furthermore notes that 92 per cent. of Google's total sales outside the US are accounted for in Ireland though they generated no profit there either, so that the company is legally avoiding 110 million of UK corporation tax in the UK and 135 million of tax in Ireland, which derives no tax benefit from Google because Google Ireland is owned by a Google subsidiary in the even more efficient tax haven of Bermuda; and suggests that, valuable and useful as Google is, it would be appropriate for Google to pay its proper social rent in this country as well as to make the same contribution to production and employment in the UK as the companies from which it is taking so much advertising revenue do.