Google pays peanuts in taxes in Slovakia

American firm Google enjoys revenues of seven digits through its advertising in Slovakia, but this country isn't paid a single euro in taxes for adverts, as all the money goes to Google's Irish branch, according to the Hospodárske Noviny daily. Via Google Slovakia, the company officially offers only supplementary services in Slovakia such as data administration. Thus Google Slovakia declared only €1.9 million in revenues in 2014 for which it paid approximately €65,000 in taxes in Slovakia. According to sources from the IT sector, quoted by the daily, Google Slovakia has in reality a significant share of the advertising market, with estimated sales of about €30- €40 million. "Advertising offered by Google in Slovakia is owned by its Irish mother company. So revenues flow from Slovakia to Ireland, possibly to another tax haven", says Peter Pašek, director of consulting firm Accace Slovakia. Google defends its tax policies as being legal. As for the Slovak authorities Deputy Finance Minister Radko Kuruc told the daily that, "Slovakia has joined an initiative involving automatic exchanges of tax information, which is designed to minimise the undesired tax optimalisation of supranational companies". Last week the European Commission said it would look at complaints and could force tech firms such as Google to pay more in taxes.