Monday 25 January 2016

PAC To Question HMRC's Google Deal


HMRC’s deal with Google, where Google will pay £130m to cover back taxes from 2005, has been called ‘derisory’.

The Public Accounts Committee has called for HMRC to be more robust in challenging mass marketed avoidance schemes, and has urged the government to regulate tax advisers with punitive financial sanctions

Speaking at the World Economic Forum in Davos, George Osborne was pleased with the deal. As per Accountancy LIVE:
"This is a major success of our tax policy. We’ve got Google to pay taxes and I think that is a huge step forward and addresses that perfectly legitimate public anger that large corporations have not been paying tax. I think it’s a big step forward and a victory for the government."

In a statement Google said:
"We have agreed with HMRC a new approach for our UK taxes and will pay £130m, covering taxes since 2005. We will now pay tax based on revenue from UK-based advertisers, which reflects the size and scope of our UK business.

The way multinational companies are taxed has been debated for many years and the international tax system is changing as a result. This settlement reflects that shift and is in line with recent OECD guidance."
However, Meg Hillier, chair of PAC has indicated via Twitter, that MPs will be looking into the issue.

Tax barrister Jolyon Maugham, QC, said the latest agreement with HMRC appeared not to have challenged the issue of whether Google has a UK permanent establishment, which would have a substantial impact on its tax position.
"There are reports that the French tax authorities are going to test the question for France. I can’t understand why HMRC isn’t going to ask our courts to decide that question for us."
This is an issue that will run and run.


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5 comments:

  1. I wonder if Dame Homer has her eyes on a position with Google as part of the deal? If so Google should think carefully before putting her in a position of influence? Cyber attacks etc will be the least of their problems with Little Miss Chaos anywhere near a decision making role.

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  2. It seems as though both media and the PAC have jumped on the 'sweetheart' bandwagon. Imagine that, Hartnetts 'replacement' following the same, not so rocky, yellow brick road.
    As for the Chancellor crowing about success and blaming labour, that typifies how non-effective he or his role is.
    All in this together, my arse!
    In the meantime, the French authorities are investigating Google over a £1Bn. tax issue, and the French market for Google is less than the UK's
    Also, its no good TV pundits and PAC members chomping their gums about the difference between turnover and profit if they dont explain the myriad ways Google might lessen its profit figure!

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  3. Google has adverts. Who knew?

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  4. Mmm... A sweetheart deal with Google? Strangely announced after HMRC has bought in Google products?

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  5. Thought I'd try and put this scandal to rhyme:

    Ossie’s Google deal
    Heralded a great success
    Not fooled for a second
    It masks a squalid mess
    Ne malum nisi quod fructuosum sit

    Posh boy politicians
    Awed by techie giants
    Cosy sweetheart deals
    Legally tax compliant
    Ne malum nisi quod fructuosum sit

    Google’s one of many
    Avoidance, not evasion
    Amazon, Starbuck, Apple
    Shirking tax obligation
    Ne malum nisi quod fructuosum sit

    You largely cannot blame
    The Google organisation
    For managing tax affairs
    To minimise their taxation
    Ne malum nisi quod fructuosum sit

    Cameron’s no intention
    To harvest CT* right
    Our country’s just a haven
    Attracting corporate might
    Ne malum nisi quod fructuosum sit

    As if that’s not enough
    In disgrace and tragedy
    Is the clusterfuck debacle
    Of Lean-dead HMRC
    Ne malum nisi quod fructuosum sit


    *Corporation Tax

    Six year’s negotiations -
    Three percent not twenty
    Well if you’re both in bed
    Undoubtedly that’s plenty!
    Ne malum nisi quod fructuosum sit

    It needs investigating
    This “deal”, dear HMRC
    130 million reasons
    We all would love to see
    Ne malum nisi quod fructuosum sit

    Scrutinise this cesspit
    Fairness is the key
    Confidentiality their ruse
    To block transparency
    Ne malum nisi quod fructuosum sit


    Five Google British offices
    With five thousand staff
    No permanent UK base?
    You’re really having a laugh!
    Ne malum nisi quod fructuosum sit

    Some say it’s indisputable
    That Google must improve
    Obligation beyond the law
    Before we can approve
    Ne malum nisi quod fructuosum sit

    But guilt and fault lie here
    With those we cannot trust
    Power crazed politicians
    Corrupt with money lust
    Ne malum nisi quod fructuosum sit

    Get off your flabby rears
    Go and change the law
    Simplify our tax system
    And make it fair for all
    Ne malum nisi quod fructuosum sit

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