4 ms·

I think the key here is -> "It is able to record the revenues in Ireland because the UK company is deemed to drum up new business, with sales staff in Dublin ex

by bifrost 13y ago

I think the key here is -> "It is able to record the revenues in Ireland because the UK company is deemed to drum up new business, with sales staff in Dublin executing all deals." If the business was initiated in the UK, but executed in France, guess who'd get the tax money -> France. This doesn't seem particularly swarthy, and frankly doesn't really warrant an article or any sort of hubbub unless you're interested in being a Google hater. I'm fine with being a Google hater, I don't use Google search/ads/gmail/etc because I don't like their privacy practices/etc... Anyways, what sort of services are we talking about here? If we're talking about Google ad network deals, you buy ads and they get displayed all over the world, you do not pay taxes everywhere the ads were shown.

DanBC 13y ago
If someone in England buys a product, in England, from someone in England, and uses English money, and that product is an ad and that ad is shown to people in England, then it seems reasonable that English taxes should be paid, even if the company uses a bizarre scheme to hand off the very last part of the chain to complete the deal in Ireland. Google is welcome to move their office to Ireland if Google wants to use the Irish tax scheme.
- bifrost 13y ago
  Thats the thing; they bought this product from Ireland not from England and they in fact do have an office in Ireland. Just because someone chatted with someone else in England about it doesn't make it an "english sale".
  - DanBC 13y ago
    > Just because someone chatted with someone else in England about it doesn't make it an "english sale". If almost all of the work was done in England then it's an English sale. The fact that Google contrives a bizarre situation where their English sales (between English staff and English customers delivered in England, not Ireland) have a tiny bit of work done in Ireland should be irrelevant. I'm not sure how you can call it an Irish sale when the money changing hands is Sterling not Euro, between banks in England not Ireland, and arranged by staff and customers in England not Ireland.
    - bifrost 13y ago
      > If almost all of the work was done in England then it's an English sale. Not true at all. If my company (an american one) goes to the UK for a sales/marketing push, and we make sales, the sale is booked as a US sale. The currency and banks used to pay for the deal have no standing whatsoever. My company can even hold a UK bank account, we can accept payment in UKP, it still doesn't change the fact that the income is booked as a US transaction. The deciding factor is under what jurisdiction the contract is signed, in this case its Ireland because thats where Google chose to close the deal (its clearly stated in the article). It may be vexsome, but this is a direct result of bad tax policy.

by bifrost 13y ago

DanBC 13y ago

If someone in England buys a product, in England, from someone in England, and uses English money, and that product is an ad and that ad is shown to people in England, then it seems reasonable that English taxes should be paid, even if the company uses a bizarre scheme to hand off the very last part of the chain to complete the deal in Ireland. Google is welcome to move their office to Ireland if Google wants to use the Irish tax scheme.

bifrost 13y ago
Thats the thing; they bought this product from Ireland not from England and they in fact do have an office in Ireland. Just because someone chatted with someone else in England about it doesn't make it an "english sale".
- DanBC 13y ago
  > Just because someone chatted with someone else in England about it doesn't make it an "english sale". If almost all of the work was done in England then it's an English sale. The fact that Google contrives a bizarre situation where their English sales (between English staff and English customers delivered in England, not Ireland) have a tiny bit of work done in Ireland should be irrelevant. I'm not sure how you can call it an Irish sale when the money changing hands is Sterling not Euro, between banks in England not Ireland, and arranged by staff and customers in England not Ireland.
  - bifrost 13y ago
    > If almost all of the work was done in England then it's an English sale. Not true at all. If my company (an american one) goes to the UK for a sales/marketing push, and we make sales, the sale is booked as a US sale. The currency and banks used to pay for the deal have no standing whatsoever. My company can even hold a UK bank account, we can accept payment in UKP, it still doesn't change the fact that the income is booked as a US transaction. The deciding factor is under what jurisdiction the contract is signed, in this case its Ireland because thats where Google chose to close the deal (its clearly stated in the article). It may be vexsome, but this is a direct result of bad tax policy.