UK

Google Reveals It Paid Over £30 Million In UK Corporation Tax In 2016

It had promised to 'pay more tax' in the UK after a national scandal.

31/03/2017 15:41 BST | Updated 31/03/2017 16:08 BST
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Google paid £36.4 million in UK corporation tax for the year to June 30, 2016, the company has revealed.

The search engine giant declared sales of £1.03bn in the UK for the 12 months up to June last year. Its pre-tax profit was £149m.

Google had paid £46.2m in tax in 2015 - representing a sharp fall from last year.

But the figure relates to an 18-month period. City AM calculated this year’s sum is nearly £6m more on a pro-rata basis.

According to the BBC, a Google spokesman said: “As an international business, we pay the majority of our taxes in our home country, as well as all the taxes due in the UK.

“We have recently announced significant new investment in the UK, including new offices in Kings Cross for 7,000 staff.”

Reuters TV / Reuters
Google's Matt Brittin appeared in front of the Public Accounts Committee after anger at the company's tax affairs

Bosses at the firm agreed last year to back-pay £130 million in taxes after an “open audit” of its accounts by UK tax authorities - prompted by anger at the company over its tax arrangements.

Head of Google Europe Matt Brittin said at the time: “Today we announced that we are going to be paying more tax in the UK.

“The rules are changing internationally and the UK government is taking the lead in applying those rules so we’ll be changing what we are doing here. We want to ensure that we pay the right amount of tax.”

Google is one of a number of international tech firms that have faced pressure over their tax arrangements.