The estimates indicate that Google earns tens of millions of euros on advertising. Slovakia, however, does not see the money flowing into its coffers as the cashflow goes to the Irish subsidiary of the company, the Hospodárske Noviny daily reported on February 1.
The reason is that the company offers only additional services via its Slovak branch, such as data management, and not advertising. Google Slovakia reported its revenues in 2014 of only €1.9 million, while its untaxed profit amounted to more than €140,000. The company paid €65,000 in taxes, as reported by Hospodárske Noviny.
Head of Google Slovakia Rasťo Kulich did not answer questions concerning taxes, and recommended the daily to turn to the Irish headquarters.
“Slovakia joined the initiative of automatic exchange of tax information via which the possibilities of undesirable tax optimisation of international companies are minimised,” State Secretary of the Finance Ministry Radko Kuruc told Hospodárske Noviny.
Moreover, the European Union adopted a package of measures against tax evasion and fraud, he added.
The fact remains, however, that taxation of Google’s revenues is a hot topic across Europe. The British government, for example, agreed with the firm that it will pay nearly €180 million in additional taxes, Hospodárske Noviny reported.
2. Feb 2016 at 13:33 | Compiled by Spectator staff