Tax Avoidance - Google
HC 112, Ninth Report of Session 2013-14 - Report, Together with Formal Minutes, Oral and Written Evidence
- House of Commons - Committee of Public Accounts
- TSO (The Stationery Office)
Despite generating $18 billion in revenue from the UK between 2006 and 2011, Google paid the equivalent of just $16 million in taxes to the UK government. The report 'Tax Avoidance - Google (HC 112)' examines how Google manages its financial arrangements in the UK to reduce its corporation tax liability.
Google argues that its tax arrangements in the UK are defensible and lawful, claiming that its advertising sales take place in Ireland, not in the UK. This argument has been undermined by clear evidence to the contrary and information from whistleblowers, including ex-employees.
The Committee argues that Google's reputation has been damaged by these revelations of aggressive tax avoidance. That damage will not be repaired until the company arranges to pay its fair share of tax in the country where it earns the profits from the business it conducts. Confidence in HMRC has also been weakened. The tax avoidance activities of multinational companies as a whole are illustrative of a much wider problem.
The Government clearly needs to act to strengthen HMRC and to simplify the tax code so that there are fewer loopholes. HM Treasury needs to take a leading role in driving international action to update tax laws and combat tax avoidance.
It must be recognized that the public mood on tax avoidance has changed and that the time has come for big UK accountancy firms to advise their clients responsibly.
|Format||Paperback||Published||13 Jun 2013|
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