Google has reached an agreement with HMRC to pay a total of GBP 130 million in back taxes and to pay tax based on revenue from UK-based advertisers going forward. The back taxes cover the period since 2005, during which Google netted an estimated GBP 7.2 billion in profits from the UK on which it had only paid approximately GBP 70 million in UK corporation tax. Google was able to pay such a low amount of tax in the UK through strategies involving the allocation of profits to Ireland, where it…