Processing .....please wait.. 
The article has been forwarded.... 
Turkey fines Google for tax evasion
By siliconindia
|
Wednesday, 04 November 2009, 18:54 IST
Istanbul (Turkey): Turkish authorities have imposed a fine on Google of $47 million for dodging country's tax system. Turkish government claims it is entitled to additional taxes because of the fact Google operates its online advertising in the country and even boasts offices and a registered subsidiary there while bills and payments originate from Ireland, according to TechCrunch.
Google's European headquarters is located in Ireland's capital Dublin and most of its support and financial services are centralized there. But Turkish authorities say Google is required to pay national taxes for revenue generated through its registered company based in Turkey, and asserts that an extensive audit shows that the American company owes the government nearly $50 million in unpaid taxes.
Google says that since it runs its ad network operations from Ireland, it is not obliged to pay taxes in Turkey just because it has a subsidiary there. In a statement, Google said it is acting in accordance with the tax laws of every country in which it operates, including Turkish laws, and that its negotiations with the government on this issue are ongoing.
Legal experts say that Turkey is right in accusing Google for not paying taxes as the company has opened a full-fledged company called Google Reklamcilik ve Pazarlama.sti. (Google Advertising and Marketing) in Turkey rather than what is referred as a 'liaison' branch.
