Being one of the most successful companies on the planet, Google is expected to stay on the right side of the law, particularly with regards to paying its taxes. Hence, when any controversy arises about the taxes being paid (or not paid) by the company, there are many people commenting about it. Once again, the company finds itself embroiled in a scandal regarding taxes. Some quarters claim that Google and other leading corporations are not paying as much tax as they should be paying.

Instead of taking a defensive approach and trying to diffuse the situation, Google’s Chairman has decided to deal with it head-on. This involves inviting the general public to debate the tax laws Google follows when paying its taxes. Eric Schmidt has clearly laid out four points on which the international tax reforms can be discussed and debated.

According to him, the laws that apply to multinationals and taxes they pay are quite complicated and not simple enough for a common man to understand. That makes it difficult for people to comprehend them and they end up criticizing Google without knowing the full facts. Moreover, he clarifies that the laws his company has been following have not been set by Google but by the men in power. Thus, Google cannot be held responsible for adhering to them.

Also, Schmidt is quite clear on bringing about some reforms to international tax laws to make payments more transparent. Given Google’s tax scandal in the UK, this does make sense. He further states that Google uses the profits it generates to fund new projects and create jobs. Not all the profits are retained by the company. He has already made it clear that taxes should be applied on taxes and not revenues.

Putting these points forward, Eric Schmidt has invited people to debate international tax reform.

[Image via sociable]