Google news: Tech giant agrees to pay 130 million tax to U.K. following $1 billion payout to Apple in 2014


The U.K. government has ordered Google to pay its back taxes amounting to 130 million. This huge pay-off is on top of the $1 billion that the company has paid Apple in 2014 for a certain business agreement.

After a six-year investigation by Her Majesty’s Revenue and Customs, it was revealed that Google owes this much amount to the U.K. government since 2005. According to the BBC, the company is only one of several companies who are suspected of tax evasion despite the many billions of pounds they have earned in Britain.

Bloomberg has reported that the tech giant was also forced to pay a massive amount of U.S. dollars to its rival, Apple, in 2014 to be able to use the default option on iOS devices for its search functions. Part of the business agreement called for Google to pay Apple a percentage of its revenue. It appears that the value could be as much as 34 percent of revenues coming from iOS devices.

The BBC says in another report that they were not able to confirm the details of the agreement independently since both companies declined to comment. Bloomberg, meanwhile, said that the specific court document has already been taken out of the Internet.

This situation stemmed from a lawsuit filed by Oracle Corp. claiming that the search giant developed its Anroid using Oracle’s Java software but did not pay for it.

In the matter of back taxes that Google agreed to pay to the U.K., senior officials of the search giant stated that the new rules set by the government will be followed by the company. That seems the company is ready to pay more taxes.

The head of Google Europe, Matt Brittin, in an interview with the BBC said: “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.”