MPs have declared that Google”s controversial £130m tax deal with the UK “seems disproportionately small” and called for the taxman to lead a charge for international tax reforms.
The Public Accounts Committee (PAC) said its investigation into the sum – covering a ten-year period – had reinforced its concerns that the rules governing where corporation tax is paid by multinational companies “do not produce a fair outcome”.
The deal was hailed as a “victory” by the Chancellor at the time it was announced last month – George Osborne arguing that it could open the door to further agreements with other companies.
However, Labour described the sum as “derisory” given the size of Google”s business in the UK.
Meg Hillier MP, the PAC”s chair, said: “Public anger has been palpable ever since this settlement was announced and we still don”t know the full details.
“Whether you call it secrecy or confidentiality, this lack of transparency does nothing to build confidence that big corporations are paying their fair share of tax.
“Google has been keen to parade its enthusiasm for simplicity in the tax system but the fact remains the company has chosen to set up a complicated tax strategy specifically designed to minimise its tax bill.”