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Google Invests $1 Billion To Build New London HQ

Posted by timothy on from the but-how-will-they-find-it? dept.

redletterdave writes "Google just purchased a 2.4-acre plot in the King's Cross Central development in London, where the company plans to build a brand-new, 1 million square foot office. Google reportedly invested about £650 million ($1.04 billion) on the property, which, when finished, will be valued at more than £1 billion ($1.6 billion). While Google traditionally leases its overseas offices, the company's decision to buy rather than rent in this case was likely tax motivated, since Google can't repatriate its cash to the U.S. without paying a hefty tax."

3 of 132 comments (clear)

  1. Can someone explain how multinationals work? by metrix007 · · Score: 4, Interesting

    With companies like Google or Coke or Sony, is it one company....say Sony is a Japanese company, that incorporates businesses in many countries which are owned by the Japanese company, and just funnel the money back into the Japanese parent corp? What is to stop the independent company from doing its own thing or making different decisions?

    Or in the case of Google, how do they have say over the UK iteration of the company? Are they all controlled by the same people? What are the relationships?

    --
    If you ignore ACs because they are anonymous - you're an idiot.
    1. Re:Can someone explain how multinationals work? by queazocotal · · Score: 5, Interesting

      The unfortunate fact is that tax laws are fucking complex, and contain loopholes smart people can find and exploit.

      If you are a large corporation, do you:
      A) Pay a hundred million in tax.
      B) Pay 20 million in legal research to find completely legal loopholes and ways to arrange your corporate structure so you can pay 10 million in tax.

      There is then the wrinkle that to not do 'B' may be against your shareholders best interests.

    2. Re:Can someone explain how multinationals work? by towermac · · Score: 4, Interesting

      Over here, I am called a conservative, but yes; we are classical liberals.

      As your simpler, dumber brother on the other side of the pond; please allow me to condense your thought into a sound byte so we can understand it over here:

      If a billion dollar building in downtown London is cheaper than the tax, then the tax is too high.