A top Google executive on Monday insisted that the company’s “key” role in developing Britain’s electronic commerce sector should be taken into account in the row over its controversial tax arrangements.<\/p>\n
According to figures cited by Conservative MP Charlie Elphicke, Google paid only \u00a33.4 million ($5.4 million, 4.2 million euros) in British corporation tax in 2011 on revenues totalling about \u00a32.5 billion, sparking fury in austerity-hit Britain.<\/p>\n
But Google’s executive chairman Eric Schmidt told BBC Radio 4’s World at One programme the company had not acted illegally and had contributed significantly to Britain’s economic growth.<\/p>\n
Defending the company’s tax bill, he said: “Of course that omits the fact that we also hire more than 2,000 employees and are investing heavily in Britain.<\/p>\n
“We empower literally billions of pounds of start-ups through our advertising network and so forth. And we’re a key part of the electronic commerce expansion of Britain which is driving a lot of economic growth for the country,” he added.<\/p>\n
Schmidt urged critics to consider the “totality” of the Internet giant’s contribution to the economy.<\/p>\n
“The fact of the matter is these are the way taxes are done globally,” he added.<\/p>\n
“I think the most important thing to say about our taxes is that we fully comply with the law.”<\/p>\n
Google has come under closer scrutiny in several European nations where cash-strapped governments are increasingly wary of being shortchanged on tax revenue.<\/p>\n
British lawmakers last year accused the company of being “immoral” during a committee grilling of Matt Brittin, chief executive of Google UK.<\/p>\n
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