Google has agreed to a deal with UK tax officials to pay £130 million in back taxes while pledging to pay more in taxes going forward. The agreement with UK tax authorities comes following a six-year investigation by Her Majesty’s Revenue and Customs (HMRC) over concerns that Google wasn’t paying its fair share. Speaking to the BBC, Google explained the move:
“Today we announced that we are going to be paying more tax in the UK,” Matt Brittin, the head of Google Europe, told the BBC.
“The rules are changing internationally and the UK government is taking the lead in applying those rules so we’ll be changing what we are doing here. We want to ensure that we pay the right amount of tax.”
The £130 million in back taxes that Google has agreed to pay covers a period spanning from 2005 through 2015. Going forward, Google says that it will change its accounting system so that a higher proportion of sales are registered in Britain instead of Ireland, where the corporate tax rate is lower.