Google has traditionally leased its overseas offices but in the past two years has purchased premises in Paris, Dublin, and now London, its filings show.
As of December 31, 2011, Google had $44.6 billion of cash, with $21.2 billion of that held offshore, according to its 2011 annual report. If the funds held offshore were repatriated, they would be subject to U.S. taxes, Google said.
Tax campaigner and accountant Richard Murphy told Reuters at the time of the January announcement that the decision to buy rather than rent was likely "tax motivated", driven by the fact the company cannot repatriate the cash to the U.S. without paying a fat tax bill.
Google declined to comment on the tax issue in relation to its new London building but said such a large-scale investment was a boost to the Britain's economy.
Earlier this month British MPs described Google's tax affairs as "contrived" after a Reuters report showed the company employed staff in sales roles in London, even though it had told MPs in November its British staff were not selling to UK clients - an activity that could boost its tax bill substantially.
(Editing by David Cowell)
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