Google CEO
Sundar Pichai has refuted accusations the tech giant failed to pay enough taxes
in Europe, saying it was up to politicians to improve the tax system. Pichai
also warned of the possible fallout from Brexit.
Deutsche Welle, 17 Jul 2016
In an
interview with Germany's "Welt am Sonntag" newspaper, Pichai said
that the US company had invested "very heavily" in Europe, where it
employs around 14,000 people.
"As a
global company, we find ourselves between the conflicting priorities of
international tax law," he said, just a few weeks after two of Google's
European offices were raided by tax inspectors.
"Based
on the structure of existing tax law, most companies pay the bulk of their
taxes in their home countries," Pichai insisted, adding that individual
governments would have to take action if they wanted more revenue to stay at
home.
"Only
the further development of the global tax system by politicians can lead to
better results," the Google chief told the paper. If new international tax
laws were passed, the search giant would adhere to them, Pichai added.
Two tax
raids
 |
| Sundar Pichai has worked for Google since 2004 |
Google's
offices in Madrid were searched in a tax probe in late June, just over a month
after police raided the Internet behemoth in Paris in a similar investigation.
French officials allege the tech company owes them 1.6 billion euros ($1.77
billion) in unpaid taxes and fines.
Tax
inspectors are attempting to prove that sales booked by Google in both
countries are much higher than those reported to tax authorities.
The swoops
are among a series of regulatory worries for Google, which is also confronting a third anti-trust charge by the European Commission over its online search advertising and shopping business. The company already faces action over its Android smartphone operating system.
Tax
shaming?
In January,
Google settled on a 155 million euro tax agreement with British authorities, a
deal heavily criticized as insufficient compared to the revenue it generates in
the country.
Tech giants
like Google, Amazon and Apple have faced criticism over their tax liabilities
as many of the firms take advantage of tax breaks in Ireland, Belgium and
Luxembourg for their European headquarters.
Pichai also
warned that Britain's decision to leave the European Union may bring
difficulties for internet companies as digital regulation diverges.
"As
companies we see great value in Europe as a unified digital market," he
said, warning that it was a challenge to keep up with varying laws and
regulations in every country. "The complexity makes a bigger commitment
difficult, which can be seen in investments," he added.
mm/jlw (AFP, dpa)
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