Saturday, 26 December 2009

Google pays no tax in the UK (or as good as) - what impact on reputation in the UK?

The Times has highlighted that Google pays virtually no tax in the UK - even though it earns around £1.6bn from the UK alone; one of its largest country markets.  In addition to paying no tax, Google has through the growth of online advertising related to search, seriously damaged many British local newspapers and put people out of work, with consequent reduction in tax revenues and additional cost of unemployment benefit.


Quite legal, but from my perspective that probably damages its corporate reputation in the UK; particularly as some comments below the article suggest it has made only minimal contribution to UK charities.  If I was the UK government or an MP asked for a meeting by a Google public affairs advisor to discuss some issue which is affecting its business, would I bother?  Doing a quick search on Twitter suggests that it is an issue with a reasonable amount of discussion.

It would be interesting to have a listing of businesses which pay the most tax in the UK.  Certainly contribution to the UK exchequer in the form of tax payments in these days of tightening public sector budgets may enhance and damage some companies' reputations with the public.  Does such a listing exist?  Are companies which pay a lot of tax emphasising this factor strongly enough or is paying too much tax seen as a negative factor with investors?  I suspect organisations are somewhat unsure how to play (even pay) the tax card.
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