Professional Challenges In Computing Essay

2073 words - 8 pages


1. Introduction 2
2. Controversy over tax 2
3. Some ethical issues associated by paying no tax 6
4. Bibliography 7

1. Introduction

“Google’s slogan “Do no Evil” was suggested either by Google employee “Paul Buchheit or by Google engineer Amit Patel at a meeting about corporate values in early 2000 or in 2001. Google has changed the slogan from “Do no Evil” to “Don’t Be Evil” in 2004. Google also stated in full: “Do the right things: don’t be evil: honesty and integrity in all we do” (Moses, 2008). Google has given this slogan to the companies who avoided tax to nation states. However, Google has involved in tax affair of UK. Google’s vice-president Matt Brittin and Amazon’s Mr Cecil have called in public accounts committee to answer the questions by members of that committee.

2. Controversy over tax

According to the - Google and Amazon have been blamed of hiding their UK-based activities to no paying fair tax. Chairwoman of the public accounts committee, MP Margaret Hodges on 16 may 2013 said to google: ‘You do do eveil’ when it comes to tax. Google has hidden their UK actions and not paying actual amount in tax. Google has purposely manipulate the realism of their business and handover the false evidence detailing Google UK – has not sold advertising and invoiced UK-based customers. Instead in argue with MP in committee Google Said they have sold advertisements mainly from Ireland and invoices generated based on Irish businesses.
“MP said to Google’s vice-president Matt Brittin – “You are a company that says do no evil” and also said you used smoke and mirror to avoid paying tax. Google convinced that they haven’t invoiced UK-based customers but yes; they have encouraged them to spend money behind advertising. Matt Brittin said no UK staff executed transaction” (Shubber, 2013).
Internet Giant Amazon also followed Google’s step to avoid paying tax to the UK’s government. Amazon sales reached millions of pounds within UK. Amazon based in Luxembourg and Google based in Ireland- said they don’t do huge business in the UK but according to the whistleblower evidence Google sells advert and other services to UK-based companies.
However, these both internet giants, by invoicing their UK sales form those countries, where low corporate tax are applicable, they have succeed in paying no/less tax in the UK. Amazon paid £3.2 million in tax on £4.3 billion of sales in 2012 and Goole paid only £6 million in tax on £3.2 billion of sales in 2011. Using their skills these company’s employees try to find a pin hole in tax legislation of UK and try to escape from paying no or less corporate tax to UK government.
Google’s own slogan “Do no Evil”, does not applicable to the Google itself as they are paying less amount of tax to the UK government by twisting and bending tax law. Also, “the US technology giant (Apple) used tax assumptions from share awards to...

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