UK Lawmakers to Fry Google – Tax Disappears in the Bermuda Triangle
nsnbc : A committee of the UK’s House of Commons will invite Google to testify about a “back-tax” deal, referring to a settlement under which Google is obliged to pay 130 million pounds ($185.61 mln) for tax claims covering a 10-year period.
While Google’s tax evasion is controversial enough, the UK’s opposition Labour party denounced the back-tax settlement with Google as derisory and “cosy”. The parliamentary commission will invite Google to testify about the “deal”.
Labour party chairwoman of the Public Accounts Committee, Meg Hillier used her Twitter account this weekend, calling on Google, now part of the holding company Alphabet Inc, and the UK tax authority to explain the “cosy deal”.
Neither Her Majesty’s Revenue and Customs nor Google were immediately available for commenting about the controversial “settlement” about the corporate giant’s tax evasion.
Tax evasion has increasingly prompted anger and outrage in the UK’s population, prompting lawmakers to beef-up their focus on the all too common practice. Public demands to address tax evasion increased after the onset of the financial crisis in 2008. The crisis and failed policies to address the crisis has rendered a large number of UK citizens dependent on food banks. An alarming number of UK citizens are malnourished. UK citizens are, quite literally, hungry for change.
The international accountancy company PricewaterhouseCooper conducted a study for the 100 Group, a lobby representing around 100 of the biggest UK companies. The study concluded that their combined corporation tax bill was half 2010 levels in 2015, despite rising profits.
Google’s “tax deal” brings its total UK tax bill over the period to around 200 million pounds. Over the period, its around 24 billion pounds in UK revenues would have generated a tax bill of almost 2 billion, if the UK unit reported taxable profits in line with group margins of around 30 percent, according, reported the Reuters news agency basing its report on calculations based on Google filings.
Google’s tax evasion, somewhat, confirms theories about mysterious “disappearances” in the notorious Bermuda Triangle. Google’s tax bill has been reduced because the global corporate giant channels profits made in Europe via Bermuda.
CH/L – nsnbc 25.01.2016