The government is clearly on a mission to pursue multinational companies such as Google, Amazon, Starbucks and others, for operating what they believe are robust tax avoidance schemes, in order to reduce their corporation tax liability in the UK.
Whilst morally, it may seem unfair that these large global companies pay very little tax within UK, it would seem that legally, they are able to achieve this due to the loop holes in our tax laws.
Therefore is it fair that these companies have been branded as “evil”? Surely it is the politicians who make the law and any exploitation of tax avoidance loop holes are fair game.
The solution seems obvious to me!
The politicians should stop wasting time and money on expensive committees, stop wasting time on bully tactics and focus on closing these legal loop holes. Google and other companies will then be forced to pay the appropriate amount of corporation tax, if they wish to trade locally within the UK.
HMRC must fully investigate Google over tax, say MPs
HM Revenue and Customs should “fully investigate” Google after information from whistleblowers “undermined” the firm’s defence of its tax arrangements, a committee of MPs has said.
Google says that advertising sales take place in low-tax Ireland, not the UK.
But the Public Accounts Committee (PAC) said it had been told by ex-employees of the tech giant that UK-based staff are engaged in selling.
Google said it complies with all the tax rules in the UK.
The company generated $18bn (£11.5bn) in revenue from the UK between 2006 and 2011 and paid just $16m (£10m) in UK corporate taxes in the same period.
Companies pay corporation tax on their profits, not their sales. But the current debate revolves around the apparent ability of multinationals to move their profits from country to country with little obvious relationship to where the sales are generated.
The committee also said that confidence in HMRC had been weakened.
It said it was “extraordinary” that the tax authority did not challenge Google over “the complete mismatch between the company’s supposed structure and the substance of its activities”………..
Read more about should HMRC investigate Google over tax arrangements at BBC NEWS – (Published 13/06/2013)
You may also be interested in these Channel 4 News videos:
Google boss struggles to persuade MPs no sales made in UK
Margaret Hodge on Google tax avoidance
So, what do you think – should HMRC investigate Google over tax arrangements?
Is the legal exploitation of our tax loop holes fair game, or not?
As always, please feel free to comment on this post and share this information with your friends and colleagues.
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