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The UK Government has denied that it is planning a special tax on Google. See story:http://www.dailymail.co.uk/news/arti...ministers.html
Google avoids paying UK tax on Google Adwords by operating via a Dublin based subsidiary. UK advertisers of Yahoo search marketing are charged 15% VAT as their operations are based in London. Since the Daily Mail story broke a spokeswomen for the Department of Business has denied that there are any plans to target Google.
http://www.theregister.co.uk/2009/05...il_bbc_google/.
However, the UK Government is now running a £170 billion deficit. Tax avoidance operations such as those used by Google will obviously attract attention when other sources of government revenue are under pressure.
Google avoids paying UK tax on Google Adwords by operating via a Dublin based subsidiary. UK advertisers of Yahoo search marketing are charged 15% VAT as their operations are based in London. Since the Daily Mail story broke a spokeswomen for the Department of Business has denied that there are any plans to target Google.
http://www.theregister.co.uk/2009/05...il_bbc_google/.
However, the UK Government is now running a £170 billion deficit. Tax avoidance operations such as those used by Google will obviously attract attention when other sources of government revenue are under pressure.
