Google 'perplexed' by tax row

Google boss Eric Schmidt said he was "perplexed" by the debate over the company's tax affairs. The internet giant's executive chairman said the firm paid everything it was legally required to in the UK.

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Miliband: Google's 'extraordinary lengths' to avoid taxes

Labour leader Ed Miliband said it was "wrong" that Google had gone to "extraordinary lengths to avoid paying its taxes."

Ed Miliband. Credit: Gareth Fuller/PA Wire

In a speech at Google's big tent event, he said: "I can’t be the only person here who feels disappointed that such a great company as Google...will be reduced to arguing that when it employs thousands of people in Britain...it’s fair that it should pay just a fraction of one per cent of that in tax.

"So when Google does great things for the world, I applaud you but when Eric Schmidt (Google's executive chairman) says, its current approach to tax is just 'capitalism', I disagree.

"And it's a shame Eric Schmidt isn't here to hear me say this direct: When Google goes to extraordinary lengths to avoid paying its taxes, I say it’s wrong."

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