Google, which has an estimated 90% market share of UK internet searches, last year used a cross-border network of subsidiary companies to ensure it did not pay a penny in corporation tax on its £1.6bn advertising revenues in Britain. The international corporate structure enables Google to avoid paying what could otherwise have been a corporation tax bill in the UK of as much as £450m. Recently filed accounts for subsidiary company Google UK Limited show none of the search engine's advertising revenues from British customers were accounted for in the business, despite operations in London and Manchester incurring "administrative expenses" of £177m last year, including a wage bill of £70m. Read more...
The international corporate structure enables Google to avoid paying what could otherwise have been a corporation tax bill in the UK of as much as £450m.
Recently filed accounts for subsidiary company Google UK Limited show none of the search engine's advertising revenues from British customers were accounted for in the business, despite operations in London and Manchester incurring "administrative expenses" of £177m last year, including a wage bill of £70m.
Read more...
srsly, though, watch the deferred payments or "provision for income taxes" as compared to reported tax payments. Cumulative tax liability amounted to 7% of 2008 gross income, 27% of 2008 net income. FY 2008, 2009 10K annual and Notes on consolidated financial statement, select pivot points.
1, 9 [ForEx]... Generally, the functional currency of our international subsidiaries is the local currency. The financial statements of these subsidiaries are translated to U.S. dollars using month-end rates of exchange for assets and liabilities, and average rates of exchange for revenues, costs and expenses. Translation gains and losses are recorded in accumulated other comprehensive income as a component of stockholders' equity. We recorded $38.6 million and $61.0 million of net translation gains in 2006 and 2007, and $84.2 million of net translation losses in 2008. Net gains and losses resulting from foreign exchange transactions are recorded as a component of interest income and other, net. These gains and losses are net of those realized on forward foreign exchange contracts. We recorded $5.3 million of net gains, $16.2 million and $35.6 million of net losses in 2006, 2007 and 2008 from assets and liabilities denominated in a currency other than the local currency. 2, 12 [equity]... As a result, and in accordance with EITF Issue No. 03-6, Participating Securities and the Two-Class Method under FASB Statement No. 128, the undistributed earnings for each year are allocated based on the contractual participation rights of the Class A and Class B common shares as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, as we assume the conversion of Class B common stock in the computation of the diluted net income per share of Class A common stock, the undistributed earnings are equal to net income for that computation. 3... Cash and investments (shorter: the deal is to keep a portfolio of agency, muni, and corporate debt loaded)
2, 12 [equity]... As a result, and in accordance with EITF Issue No. 03-6, Participating Securities and the Two-Class Method under FASB Statement No. 128, the undistributed earnings for each year are allocated based on the contractual participation rights of the Class A and Class B common shares as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, as we assume the conversion of Class B common stock in the computation of the diluted net income per share of Class A common stock, the undistributed earnings are equal to net income for that computation.
3... Cash and investments (shorter: the deal is to keep a portfolio of agency, muni, and corporate debt loaded)
I do get a kick out of GOOG bashing. This joint is its own RE bubble -- prices will never fall! LORDaMercy! if I had demanded a nickle from every wanker who said, indiginantly, "Google doesn't do advertising!" I coulda bought into the ground floor. LOL.
subsidiaries, worldwide Diversity is the key to economic and political evolution.
The real question is how that point could be conveyed to a broader audience. As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
gawd bless the GOOG. best search engine EVAHHH. Gonna launch best dark fiber wi-fi and free cartoons and HEVs EVAHHH.
See Income statement and statement of stockholders' equity. Operating costs attributable to "stock-based compensation expense" apart from bareley declared costs of new "stock-based compensation" and CFO repos, i.e. redemption by one of 2,965 common shareholders at any given time.
srsly. Diversity is the key to economic and political evolution.
karma ~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~
