THE Government is facing fury over Google’s tax deal as it emerged British
taxpayers are being cheated out of billions.
The web giant has agreed to pay £130million in taxes owed since 2005, a move
heralded by Chancellor George Osborne as a “really positive step”.
But the sum was branded “derisory” as experts revealed the US firm had got
away with paying a tax rate of just 2.77 per cent.
Companies normally pay corporation tax at 20 per cent.
Even after the deal Google is said to have paid just £200million in tax in the
past decade, on estimated UK profits of £7.2billion.
Facebook, Amazon and Microsoft are among those thought to be trying to strike
similar deals.
READ MORE:
Revealed:
The German gran who claims she destroyed her £33million winning Lotto ticket
in the wash
Nearly
60 claims of unlawful squaddie killings logged… 58 cases dropped
Asylum
seekers forced to wear coloured wristbands in order to claim daily food
Welfare
cash bonus for men with more than one wife
Tax expert Prof Prem Sikka, of Essex University, estimated Google has avoided
around £1.6billion in taxes, despite earning ten per cent of its global
revenues here.
He said: “The smaller taxpayer who cannot afford to set up Google-style
arrangements will be the loser. This deal is very damaging.”
Shadow Chancellor John McDonnell described the figure as “derisory” and said
he will demand answers in Parliament today.
London Mayor Boris Johnson said the blame for the “derisory sums” lay with the
Government. He said of those who blame firms: “You might as well blame a
shark for eating seals.”
Matt Brittin, head of Google Europe, told the BBC: “We want to ensure we pay
the right amount of tax.”
