US tech giant Google may not be paying taxes to Britain, but according to its latest report, it is contributing a great deal to UK's economy through the digital revenue made by local businesses in that nation through the search engine.
Google usually reports its value to various countries where it operates. According to IT Pro Portal, Google through the accountancy firm Deloitte reported that it has help generated 210,000 jobs in the UK.
But to most economies, jobs are a cost, not a benefit, which means the 210,000 job created is not adding value to the UK economy.
Another report from Google most analysts contend is the "profits" generated by businesses using Google Search and AdWords. Google reported that British businesses made £11 billion to £28 billion from the ad they invested in Google Search and AdWords.
According to the study from Google, for every £1 invested by a business on online advertising, it gets £3.40 to £8 worth of gross advertising profits.
However, Forbes writes that revenue must not be confused with profits. Forbes argues that it can only be considered profit, if the product being sold has no cost in production and sale, which is highly unlikely even online.
According to Telegraph UK, Google states six key areas where it claimed it has given the UK many benefits. First, the search engine and advertising products of the tech company lets businesses in the UK connect with consumers worldwide, increasing their export revenue.
Next is how Google's content distribution service lets content creator make more money by reaching a larger audience. Google's display advertising is very beneficial to UK brand advertisers, publishers, and agencies. Mobile app developers connect to countless consumers through Google's Android platform.
Businesses in the UK also benefit from the tech giant's cloud-base services, from Gmail to Google Docs.
Finally, Google increases the digital literacy of UK businesses, students, and entrepreneurs.
Despite Google's report, Forbes contributor Tim Worstall argues that there is something wrong with how Google computed its benefits to the UK economy, especially that GDP is much involved in the report.
Worstall said there should be revisions in how the economic statistics are carried out. The current GDP figures are still based on in the 1930s.
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