Google avoided paying ?218 mln in tax in UK: Report

London, Aug. 9 (ANI): Internet search giant Google is facing a fresh backlash over its financial affairs, after it emerged that the firm avoided paying over 200 million pounds in taxes to the British Government.

Company accounts showed that last year Google raked in 2.6 billion pounds in revenues from its UK operations, which are officially based in Ireland.

The group, however, admitted it paid only six million pounds to the Exchequer during 2011, the Daily Mail reports.

According to the tax experts, the sum is 218 million pounds short of what it should have coughed up.

The shortfall deprives UK government's Revenue and Customs department of much-needed money to fund public services, leaving ordinary taxpayers to make up the difference.

Google has long been accused of doing cosy deals with the taxman to minimise its bill.

According to the paper, Google's UK arm claimed it made only 395million pounds turnover in 2011.

But figures released by its parent company in California, Google Inc, show that the UK division had revenues of 2.6 billion pounds during the year.

The paper quoted tax accountant Richard Murphy, as saying that the firm achieved this by registering its UK arm as a services business, which allows it artificially to deflate its real sales figures.

It does this by channelling its UK operations, and revenues earned here, as a 'service' to Ireland, where corporation tax is lower. (ANI)