Google faces tax investigation by China

[alp227]

Source: Reuters

Chinese authorities have found three companies linked to Google Inc broke tax rules and are investigating possible tax avoidance, a state-run newspaper said on Thursday, raising the risk of renewed pressure on the internet search giant.

Google said two of the companies named were its units and a third was a separate firm that works closely with Google. But Google denied the tax violations alleged in the Chinese-language Economic Daily.

"We believe we are, and always have been, in full compliance with Chinese tax law," Google said.

Even if the report is unfounded or embellished, it could bring fresh headaches in China for Google, which has gone through difficult times there since early last year when it clashed with the government over internet censorship and hacking attacks.

Read more: http://www.guardian.co.uk/technology/2011/apr/01/google-faces-tax-investigation-china

[valerief]

1. Wow. China collects taxes from corporations? The U.S. doesn't. They give corps money. nt

[FLPanhandle]

2. Who didn't see that coming once Google stopped censoring for the Chinese government

It's payback time for not being complicit with censorship.