• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

2

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

3

Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock

1

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

2

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

3

Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock
Google

Google’s Tax Troubles in Europe Aren’t Going Away

By
Geoffrey Smith
Geoffrey Smith
Down Arrow Button Icon
By
Geoffrey Smith
Geoffrey Smith
Down Arrow Button Icon
January 28, 2016, 9:01 AM ET
EU-POLITICS-JOBS
European Union Commissioner for Competition Margrethe Vestager of Denmark attends her hearing at the European Parliament in Brussels, on October 2, 2014. AFP Photo/Thierry Charlier. (Photo credit should read THIERRY CHARLIER/AFP/Getty Images)Photograph by Thierry Charlier — AFP/Getty Images
Add Fortune on Google for similar content.

Google Inc. (GOOG) may have thought its tax deal with the U.K. was the end of an awkward chapter in Europe, but it’s looking more like the beginning of a bigger one.

The European Union’s top antitrust cop, Margrethe Vestager, signalled Thursday that she’s ready to take a look at last week’s deal with the U.K. if someone makes a complaint about it.

“If we find there’s something to be concerned about, if someone writes to us and says maybe this is not how it should be, then we will take a look,” Vestager told the BBC. One U.K. lawmaker, the Scottish Nationalist Party’s Stewart Hosie, has already done just that, according to the Financial Times.

That is a potentially ominous development for Google, given that Vestager has already forced Starbucks Corp (SBUX) and Fiat Chrysler Automobiles (FCAU) to pay back millions of euros to the Netherlands and Luxembourg respectively after ruling that their sweetheart tax deals with those countries represented unfair state aid.

There was been uproar in the U.K. at the settlement announced last week, under which the Silicon Valley giant will pay 130 million pounds ($190 million) in back taxes on profits generated in the U.K. over the last 10 years. The sum reflects an implicit tax rate of 3% on the profits it made in one of its biggest oversees market. The standard rate of corporate profit tax in the U.K. is 20%.

For comparison, France is set to exact €500 million $540 million) from Google in taxes, despite generating much less in revenue and profit there. Italy, which generates less than a tenth of the revenue Google gets from Britain, said Thursday the company had evaded around €300 million in taxes between 2008 and 2013.

Critics of the deal suggest that Google has used its proposed plans to build a new European HQ in London, creating 5,000 jobs, as leverage over the government to get an advantageous settlement. In a letter to the FT, Google’s head of European Affairs Peter Barron implied that any blame for the controversy should rest with national governments, who for years have facilitated a ‘race to the bottom’ in tax collection by luring multinationals with sweetheart deals.

“Governments make tax law, the tax authorities independently enforce the law and Google complies with the law,” Barron wrote.

The deal, under which Google and other Silicon Valley companies would still be able to continue diverting revenue and profit generated in the U.K. to offshore haven like Bermuda via Ireland, has come under fire from politicians, tax experts and, not least, Google’s biggest rivals in the advertising and media business.

News Corp (NWS) Chairman Rupert Murdoch, who has enjoyed enormous influence over a string of U.K. governments, tweeted that the “posh boys” in Downing St–a sneer at Prime Minister David Cameron and Treasury chief George Osborne–had succumbed too easily to Google’s lobbying. There was no suggestion of any irony in his tweets.

Google has cleverly planted dozens of their people in White House, Downing St, other governments.
Most brilliant new lobbying effort yet.

— Rupert Murdoch (@rupertmurdoch) January 27, 2016

Tech tax breaks facilitated by politicians easily awed by Valley ambassadors like Google chairman Schmidt eg, posh boys in Downing St.@

— Rupert Murdoch (@rupertmurdoch) January 27, 2016

Global tech companies making enormous profits most places, funnelling $$ thru tax havens. Unless stopped will ruin local businesses who pay.

— Rupert Murdoch (@rupertmurdoch) January 27, 2016

Google et al broke no tax laws. Now paying token amounts for p r purposes. Won't work. Need strong new laws to pay like the rest of us.

— Rupert Murdoch (@rupertmurdoch) January 27, 2016

Elsewhere Thursday, the E.U. Commission published new draft guidelines aimed at cutting tax evasion by multinational companies, a practise that costs member states up to €70 billion a year in lost revenue, according to Commissioner Pierre Moscovici. The proposals include a common framework for tax rules that all 28 member states would be obliged to accept, thus limiting their ability to cut deals with individual companies.

However, there is little sign so far from member states that they are any more willing to transfer or pool their powers over taxation than they have been in the past.

About the Author
By Geoffrey Smith
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in International

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Most Popular

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
Success
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
By Orianna Rosa RoyleJune 23, 2026
1 day ago
The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
Economy
The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
By Jacqueline MunisJune 24, 2026
10 hours ago
Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock
Banking
Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock
By Jim EdwardsJune 23, 2026
1 day ago
Current price of oil as of June 23, 2026
Personal Finance
Current price of oil as of June 23, 2026
By Joseph HostetlerJune 23, 2026
1 day ago
Current price of gold as of June 23, 2026
Personal Finance
Current price of gold as of June 23, 2026
By Danny BakstJune 23, 2026
1 day ago
Texas and Charlotte used to build huge McMansions—now they're copying the California design tricks they once mocked
Real Estate
Texas and Charlotte used to build huge McMansions—now they're copying the California design tricks they once mocked
By Sydney LakeJune 22, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.