Google has been ordered to pay business taxes on 14,570m rupees ($224m) of profit to the Indian government after losing a six-year legal battle.
The nation’s Income Tax Appellate Tribunal (ITAT) decided this week that Google India had engaged in a “clear and conspicuous” case of tax evasion when it sent all of its pay dirt to – get this – Google Ireland.
As it has done repeatedly in Europe, Google Ireland “licenses” the American web giant’s Adwords technology, through which it makes most of is money, to other subsidiaries in Europe and then all income derived from those ads are sent to Ireland, where Google has reached a special low-tax deal with the Irish government.
That arrangement has infuriated European officials for years to the extent that there are now serious proposals to change the law to force Google to pay tax on earnings in the country where they are received.
But extending …