First Amazon, now Google: Tax backlash grows as whistleblowers say 'evil' search giant's advertising

[dipsydoodle]

Google's tax policy is devious, unethical and far from the company's stated aim to 'do no evil', MPs said today.

In a damning indictment of the Internet giant members of the Public Accounts Committee said they did not believe their claims that they were not effectively selling advertising in the UK.

They accused the company of a "calculated" attempt to avoid tax at a time of huge pressure on public finances.

"I think you do evil," the committee's chair Margaret Hodge told Google's European head of sales Matt Brittin.

http://www.independent.co.uk/news/uk/politics/first-amazon-now-google-tax-backlash-grows-as-whistleblowers-say-evil-search-giants-advertising-sales-do-take-place-in-uk-8618695.html

[CBGLuthier]

1. can anyone find exactly what law they broke?

I keep hearing about this yet no statement of what exactly is illegal about it.

[dipsydoodle]

2. Assume the the issue to be point of sale.

If the advertising occurs and is invoiced here then the associated revenue is not only UK income for tax purposes it is also subject to vat.

[muriel_volestrangler]

3. Claiming work done by a UK subsidiary as done in Luxembourg or Ireland

so that they can pay less corporation tax.

This includes pay-slips showing UK based staff being paid substantial bonuses depending on their 'sales' and evidence that big clients were being dealt with almost exclusively in the UK.

Under hostile questioning Mr Brittin admitted that a "lot of the aspects of selling" did take place in the UK. But he insisted that the "closing of the transaction" took place in Dublin - which allowed them to avoid UK corporation tax.

If they are misrepresenting where work is done to evade tax, it might be illegal.