Just one problem with Ed’s Google-bashing this afternoon:
— Ed Miliband (@Ed_Miliband) May 21, 2013
Guido readers will know that HuffPoUK is owned by AOL Limited, whose parent company is the Luxembourg-registered AOL Europe Sarl.
In 2010 AOL UK Limited, HuffPo’s esteemed owners, had a revenue of £78 million. Despite that they paid just £122,000 in corporation tax, cleverly moving £30 million out of the reach of the UK tax authorities by “repatriating” a dividend payment to a tax avoidance special purpose vehicle (SPV) AOL Europe Sarl, registered in the tax haven of Luxembourg. This meant, despite returning 38% of revenue to shareholders, they had an effective tax rate of less than 1%. Guido looks forward to Ed’s article attacking AOL and HuffPo for “going to extraordinary lengths to avoid paying taxes”. His spokesman insists that “all companies need to be responsible.”