(UK) Via Acquire Media NewsEdge) TELECOMS groups including the UK’s largest mobile operators will today meet with the Department for Culture, Media and Sport (DCMS) over ongoing plans for the rural broadband rollout. Executives from EE, Vodafone and Three will all attend a meeting to explore ways of expanding coverage using mobile technologies, according to a report from the Financial Times. The DCMS came under fire last week from the government spending watchdog for failing to ensure a competitive process for the 530m of superfast broadband contracts that have all been won by BT so far. Mobile operators last week called on the government to reconsider its plans for the remaining 250m of the rural broadband fund in order to explore alternative options for the Broadband Delivery UK project (BDUK). “The current BDUK process simply will not deliver value for money nor the rural connectivity that Britain needs. The Government should urgently revise the process to encompass wireless 4G in order to make digital Britain a reality,” said a spokesperson for Vodafone UK last week. The rural broadband project is designed to cover 90 per cent of the country with superfast broadband by 2015, but the Public Accounts Committee (PAC) said last week that the DCMS had mismanaged the bidding process for the contracts by not making them competitive enough. “BT will still benefit from owning assets created from 1.2 billion of public funding once the Programme is complete,” the PAC report said. Vodafone, EE, O2 and Three have all committed to reaching 4G coverage of 98 per cent of the UK population by 2015, however the speeds of the 4G mobile internet have not been guaranteed for the coverage meaning that it may fall below what the government consider as superfast. (c) 2013 City A.M.
Google UK Ltd’s Tax Rate Was Actually 83.8% Of Profits So What Were The Guardian Talking About?
Googles complex tax arrangements, under which sales are booked in Ireland but revenues funnelled to a subsidiary in the tax haven of Bermuda, help the group pay minimal tax on the billions it earns outside the US. Google UK said in its latest accounts that it earned pre-tax profits of 37m on a turnover of 506m. The thing is, Google didnt pay 11.6 million in tax on that 37 million profit. Its paid 30.8 million in tax on that profit of 37 million for a tax rate of 83.8%. The actual accounts I have here. And as you can see the numbers The Guardian are using are simply wrong. The reason why theyre wrong is also simple enough to explain. Google was expensing certain of the stock awards that theyve made to staff. HMRC has, possibly correctly, insisted that these are not in fact tax-deductible expenses. They might well be correct under IFRS but theyre not under the tax rules: therefore previous tax deductions taken have to be reversed and the tax paid. Which is how Google UK Ltd is in fact paying an 83.8% tax rate in a country where the headline tax rate is 24% (for the year under discussion). Even if you ignore that the rate is still over 31%. What appears to have happened is that The Guardian filed its report about the tax bill they day before Google actually filed the accounts with Companies House.