Google agrees to pay £130m in back taxes dating to 2005
Internet giant Google has agreed to pay back taxes of £130 million to the Government, the company said.
The US online search firm, which has faced severe criticism of its UK financial arrangements, said the payment covered back taxes since 2005.
It said the deal with HM Revenue and Customs would also see it in future pay tax "based on revenue from UK-based advertisers, which reflects the size and scope of our UK business".
A spokeswoman said: "We have agreed with HMRC a new approach for our UK taxes and will pay £130 million, covering taxes since 2005.
"We will now pay tax based on revenue from UK-based advertisers, which reflects the size and scope of our UK business.
"The way multinational companies are taxed has been debated for many years and the international tax system is changing as a result. This settlement reflects that shift and is in line with recent OECD guidance."
The issue of how much UK tax multinational firms like Google, Amazon and Facebook pay in the UK has hit the headlines in recent years, with HMRC indicating back in October 2013 that it was looking into Google's accounts.
An HMRC spokesman tonight said: "The successful conclusion of HMRC inquiries has secured a substantial result, which means that Google will pay the full tax due in law on profits that belong in the UK. Multinational companies must pay the tax that is due and we do not accept less."
