Google and tax avoidance

Discussions about corporate tax dodging are picking up pace. The issue is clearly an international one – and according the OECD and EU have both launched initiatives to try to tackle corporate tax avoidance. The most recent cases include the agreements reached with Google on its tax liabilities. The details of the negotiations between HMRC and Google remain hidden. And there are accusations that the ‘deal’ struck with the UK is worse than the agreements reached with a number of other countries with claims made that the effective rate of corporation tax paid by Google over the past decade is equivalent to about 3% of profits.

The UK’s Public Accounts Committee has signalled its intention to investigate further the issue of tax avoidance.

Relevant pieces from the media:
http://www.theguardian.com/business/2016/jan/25/mps-launch-corporation-tax-inquiry-criticism-130m-google-hmrc-deal/

http://www.theguardian.com/technology/2016/jan/23/google-uk-back-tax-deal-lambasted-as-derisory

http://www.ft.com/cms/s/0/ac633f3a-c060-11e5-846f-79b0e3d20eaf.html#axzz3yS7smGV4