Google Agrees To Pay GBP 130 Mln In U.K. Tax Settlement

(RTTNews) - Google parent Alphabet Inc. (GOOGL, GOOG) has agreed to pay 130 million pounds or $185 million in a tax settlement with U.K. authorities.

The company said it will adopt a new approach for U.K. taxes, and the settlement covers taxes going back to 2005. It will now pay tax based on revenue from U.K.-based advertisers, which reflects the size and scope of its U.K. business.

The company has been criticized for paying a fraction of the taxes due on sales in the U.K.

The agreement divided politicians in the U.K. While Chancellor of the Exchequer George Osborne said on Twitter that it was a "victory" for the government's policies, Shadow Chancellor John McDonnell reported said that the bill was "derisory" and looked like a "sweetheart deal," and that he would call for it to be investigated by the public sector watchdog.