“If the British system changes the tax laws, then we will comply,” Schmidt said. “If the taxes go up, we will pay more, if they go down, we will pay less. That is a political decision for the democracy that is the United Kingdom.”

This sums up my thoughts beautifully, at no point has this company paid less than it should, it paid exactly what the government permitted it to pay in taxes. If you want more taxes from companies and you want the companies to stop using loopholes in the tax code then close all of the loopholes and stop permitting new loopholes to be made. It might be time to fully review the tax code and find all the issues and loopholes that allow companies and people to avoid paying what they should.

I am interested in how they avoided paying  taxes that the governments are claiming they should be paying, but the issue is that the tax law let them avoid paying a large sum of money that the government believes they should be paying.

What Google is trying to do is force a change in the law so that they must pay the proper amount and can not use loopholes. This will have the effect of stopping all companies from using the loopholes not just Google. This will increase the tax flow from all companies and allow the government to provide the services that society needs to operate.

Source: BBC News