Description: Google has settled a six year tax audit with the British government; the amount owing – 130 million British pounds. And Google faces a similar tax bill in Italy while the government of France threatens to collect about three times as much from the Internet search-engine king. But don’t feel too sorry for Google. Some calculate that even with this settlement in Britain, Google is paying a tax rate of about three percent there, due to its complex means of booking revenue in low tax locations.
Date: January 29, 2016
1) What’s your personal feeling about Google’s tax avoidance strategies described in the article?
2) Do you agree with the article’s conclusion that because of public outcry, “it is only a matter of time before the game of multinational tax avoidance . . . is banned?”
3) Would accounting theory have anything to tell us about where the revenue of Internet companies like Google and Facebook should be recorded?