In testy exchanges with lawmakers, Tom Hutchinson, Google’s vice president of finance, said the deal reached with the U.K.’s tax authority was the largest settlement the Internet giant has paid outside the U.S. He was appearing before parliament’s public accounts committee, which is tasked with ensuring British taxpayers get value for money from the government.
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The Sun said the latest such initiative took place at the tech firm’s London HQ last week despite the row over the tax deal.
Explaining why his company paid the amount in corporation tax it did, Brittin remarked: “We’re paying the tax bill the tax man has told us to pay”, pointing out that there was no mechanism for his company to pay anymore if it should want to.
“It seems a bit of a PR disaster if you didn’t have the nous to realise in the same week that taxpayers were filing their tax returns, and sweating over a little bit of bank interest and getting it in on time, and you announce this as a good deal”.
The deal, in which Google agreed to pay £ 130 million ($189 million) in back taxes and boost future tax payments, sparked outcry in the United Kingdom among those who say the Mountain View, Calif., company should have paid more.
Shadow minister without portfolio Jonathan Ashworth said: “We already know of the close links between ministers and Google, but this is evidence of the cosy relationship between the company and Government and raises serious questions”.
“Some of the characterisation in the time since has suggested some kind of a deal”, he said.
Brittin: I don’t have the figure, but I’ll happily provide it.
“Many elements contribute to a multinational business’s economic activity and thus generate the profits, including the work that staff do, the technology driving and used by the business, intellectual property and other assets as well as where those assets are developed and actively managed”, the agency said.
But committee member Stewart Jackson (Con, Peterborough) told him: “You have made a choice to avoid tax and you have set up structures so to do”.
She added: “Don’t you feel a bit embarrassed by this? You are living on a different planet to most of our constituents”.
Google is also now facing audits in multiple countries including Italy and France, which is asking for as much as €1 billion ($1.13 billion) in back taxes and penalties.
And he told the Google executives: “While we are having this discussion, what’s actually happening is that the rate of offtake from United Kingdom declared tax is going up and up”.
MPs from the major parties have been scathing about the amount, describing it as paltry and an example of Google freeloading on tax payer-funded United Kingdom infrastructure.
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Many in Britain were angered by the arrangement, calling it a “sweetheart deal”, and demanding Google pay more.
