CALIFORNIA: Google has agreed a deal with British tax authorities to pay £130m in back taxes and bear a greater tax burden in future.
The deal will cover a decade of underpayment of UK taxes by the company, which has been criticised in the past for its tax avoidance policies.
On Friday night a Google spokesperson indicated a change in policy.
“We will now pay tax based on revenue from UK-based advertisers, which reflects the size and scope of our UK business.
“The way multinational companies are taxed has been debated for many years and the international tax system is changing as a result. This settlement reflects that shift and is in line with recent OECD guidance.”
A Google spokesman confirmed reports that the firm was to pay £46.2m in taxes on UK profits of £106m for the 18 months to June 2015, as well as back taxes owed for the previous decade.