MPs Criticise Google's "Disproportionately Small" Tax Deal

By James O Malley on at

The deal which will see Google pay the government £130m in back taxes for a ten year period has been criticised as "disproportionately small when compared with the size of Google’s business in the UK", by MPs.

According to the Guardian the Public Accounts Committee has published a report off the back of Google's agreement with Chancellor George Osborne and HMRC. The report urges the government to "lead the way in pressing for changes in international tax rules to prevent aggressive avoidance by multinational companies".

Like many big companies, Google has organised itself into a complex, multi-national structure in order to minimise it's tax burden.

Meg Hillier, who chairs the committee isn't pleased. She explained to the Graun, "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."

In January, it was reported that Google has $43bn in "offshore" cash, stored in complex arrangements in Ireland, The Netherlands and Bermuda.

"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.", Hillier added. [The Guardian]