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.However, Meg Hillier, chair of PAC has indicated via Twitter, that MPs will be looking into the issue.
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."
Bet individual taxpayers wouldn't get off as lightly as Google on back tax. Cosy deal. Will call HMRC and Google to @CommonsPAC to explain.
— MegHillierMP (@Meg_HillierMP) January 23, 2016
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.
Tax does have to be taxing.
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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.
ReplyDeleteIt 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.
ReplyDeleteAs 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!
Google has adverts. Who knew?
ReplyDeleteMmm... A sweetheart deal with Google? Strangely announced after HMRC has bought in Google products?
ReplyDeleteThought I'd try and put this scandal to rhyme:
ReplyDeleteOssie’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