The Executive Chairman at Google had some honest advice for tax collectors. They should pay attention to the vast benefits to which Google lent the nation direct access. The giant search engine was in the same boat as the other multinationals since it paid six million pounds in taxes each year. The creation of employment was the biggest pay-off from an economic point of view.
According to the Telegraph, the Public Accounts Committee accused other companies besides Google such as Starbucks and Amazon of tax evasion. The Chairman told BBC that this left out the fact that his super firm gave a steady source of income to over 2000 people who made up its work staff. Furthermore, the main place where all the investment took place was none other than Great Britain.
Eric Schmidt especially urged them to consider the net total tribute paid in financial form by Google to Britain’s economy. He even said that his company followed the tax laws and should the laws change they would do as per requirement of the changing times. The fact of the matter is that many European governments have taken to persecuting what they consider to be tax evaders in a tyrannical effort to fill their coffers. This comes at a time when the side effects of the 2008 financial crisis are in full swing.
The controversy has heated up recently and that is what led the Executive Chairman to give a speech regarding what is a legitimate query. The whole scandal began when MP Charlie Elphicke claimed that Google gave only 3.4 million pounds of tax on an income generation of 2.5 billion pounds. This sent the government leaders into paroxysms of rage. However, Eric Schmidt says that is not necessarily so. In his humble opinion, nothing out of the ordinary has occurred. In fact, he has turned the tables by proving that his organization has helped heal Britain’s economic situation more than it has hindered it.
“The fact of the matter is these are the way taxes are done globally” he said with sincerity of purpose. This shows that Google wants to come clean. The company is by far the largest search engine in the entire world. It may earn a lot in revenues but it also deserves them since the output is not limited. A giant source of productivity and employment for so many smart and intelligent people, Google may not be angelic but neither is it an agency to be demonized.