Google have ended up in a rather sticky situation with the Turkish government who claim the company owes £28.5 million in taxes.
Techcrunch informed their readers that the Turkish government have just completed a one year investigation into the internet giant and they believe that Google owe them a massive amount of money in additional taxes.
The crux of this investigation hinges on the fact that while the European Google HQ is in Ireland, the fact that the company have offices in Turkey and runs their profitable advertising services from there means that it is in fact actually liable for national taxes on all revenue generated via the Turkish section – totalling 71M Turkish Lira.
Google, as expected is not accepting the findings and it claims that the entire European advertising operation is run entirely from Ireland. The Turkish government’s claims of tax responsibility are given substantial confirmation by the fact that Google has a fully-owned subsidiary registered as a limited Turkish company called Google ReklamcÄ±lÄ±k ve Pazarlama Ltd. Åžti. (Google Advertising and Marketing Limited).
If Google do not pay the £28.75 million they will end up in court and possibly even banned from operating their structure from Turkey.
Allan Campbell: Heaven Media