Alphabet Inc. (NASDAQ:GOOG) paid more than £1bn in wages but only £44m in UK corporation tax
Google’s UK staff earned an average of £234,000 each last year as the tech firm paid more than £1bn in wages and a share scheme – but only £44m in UK corporation tax.
Google, which increased UK staff numbers by almost 800 to 4,439 last year, footed its first £1bn-plus wage and salary bill for the year to the end of June. The £1.04bn total was a 25% increase on the £829m paid to staff in 2018, according to the company’s latest financial filings in Britain.
The accounts show UK staff received a £441m bonanza in share-based bonuses, thanks to Google’s surging stock price and financial performance in 2019. This is 29% more than the £342m pot the previous year.
The pay bill was spent on 1,723 marketing staff, 2,171 research and development employees and 545 classified as management and administration. The average payout of £234,000 is £8,000 higher than the £226,000 average pay package in 2018.
The accounts show Google paid £44m in UK corporation tax, down from £66m a year earlier, as pre-tax profits fell slightly from £246m to £225m. Cost increases in the year included the hiring of almost 400 research and development staff, as spending in this area rose from £387m to £462m year on year.
“As an international business, we pay the vast majority – more than 80% – of our corporate income tax in the US, which is our home country,” a spokeswoman for Google UK said. “We also pay all of the tax that is due in the UK. We continue to strongly support the OECD’s [Organisation for Economic Cooperation and Development] work to develop a new international framework for how multinational companies are taxed.”
The government is pressing ahead with plans to impose a 2% digital services tax on the UK revenues of online companies including Google, Facebook and Amazon.
Google UK reported £1.6bn in revenues last year, up from £1.2bn, but this does not reflect how much it makes in total advertising revenues in the UK as they are reported in other jurisdictions.
The research company eMarketer estimates that in reality Google made about £5.7bn in ad revenue in the UK last year, accounting for 39% of the total digital ad market, and will make more than £6bn this year.
In October, it emerged that Facebook’s UK operations paid £28m in corporation tax last year despite achieving a record £1.6bn in British sales. EMarketer estimates that in reality Facebook, the second-biggest player in the UK digital ad market behind Google, made £3.6bn in online ad revenues, and will make £4.2bn this year.
Google UK operates as the marketing and sales division of its European operation, which is headquartered in Dublin, where taxes are lower.
The UK operation makes most of its reported revenue through an annual “research and development” fee from its US headquarters and a “marketing services” payment from Dublin.
Google, which has a market value of more than $800bn, made $111bn in total global revenues and profits rose to $34bn last year. In the Europe, Middle East and Africa region, revenues rose 13% from $44.7bn to $50.6bn.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 1,319.10.
The projected upper bound is: 1,325.97.
The projected lower bound is: 1,036.68.
The projected closing price is: 1,181.32.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 51.7250. This is not an overbought or oversold reading. The last signal was a sell 6 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 49.59. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 16 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 169.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 7 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed up 89.040 at 1,186.920. Volume was 100% below average (consolidating) and Bollinger Bands were 16% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,133.03 1,314.18 1,267.69
Volatility: 85 76 45
Volume: 2,589,584 2,465,901 1,646,312
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
ALPHABET INC C gapped up today (bullish) on light volume. Possibility of a Common Gap which usually coincides with a lack of interest in the security. Common Gaps are fairly irrelevent for forecasting purposes. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
ALPHABET INC C is currently 6.4% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of GOOG.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on GOOG.O and have had this outlook for the last 29 periods.