jump to navigation

Google ‘Pays Just 0.14% Tax in 7 Years’ December 9, 2012

Posted by Garibaldy in Capitalism.

Something useful in the Sindo, a story revealing just how little tax Google has been paying.


1. Bartley - December 9, 2012

Except that the Sindo gets a FAIL for basic accounting.

The figures presented by that august publication would only represent an effective tax rate of 0.14% if Google had a legitimate cost base of zero.

Whereas in fact those datacenters don’t run themselves, neither do multicoloured fireman’s poles come cheap 😉

However we can easily tot up a ballpark estimate of the true effective tax rate by looking at Google’s worldwide margins:


which come out at circa 26%.

Assuming a similar unmanipulated cost base for the European operations feeding into to Google Ireland’s inflated turnover, then the actual effective tax rate is more like 0.57%.

Tut, tut, Sindo … even when a semi-accurate calculation would still yield a decent headline, they still gotta push the envelope into the realm of makey-uppy stuff.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: