Google chief Eric Schmidt defends company's tax affairs

Google chief Eric Schmidt

Google's executive chairman Eric Emerson Schmidt has defended the company's tax affairs after it came in for heavy criticism this week.

Mr Schmidt said Google "has always expected to do the right thing", but added that "international tax law could almost certainly benefit from reform".
Writing in the Observer, he said he wanted "to move the debate forward".

On Thursday, Google executive Matt Brittin faced tough questioning from MPs on the Public Accounts Committee.

Google, Starbucks and Amazon are among several large companies to face criticism over the amount of corporation tax they pay.

Mr Schmidt wrote in his Observer article: "While profit has become something of a dirty word, it's important to remember that many corporations reinvest their profits in research and product development, which in turn tends to lead to job creation, further economic growth and, ultimately, more tax.

"For example, Google has just announced plans to invest more than £1bn in new offices in London's King's Cross. It's been estimated that this investment will generate some £80m a year in new employment taxes and £50m in stamp duty.

"This is in addition to the significant amounts we already pay in UK tax through corporate, local and employment taxes."

Mr. Schmidt's defense comes ahead of a planned meeting with U.K. Prime Minister David Cameron over the matter.
Source: BBC Posted by Unknown 5/20/2013