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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.


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