The Public Accounts Committee has said that HMRC must “fully investigate” Google following “whistleblowing” revelations by ex-employees that the technology giant is using UK-based staff to sell advertising space. The company previously defended its controversial tax arrangements by arguing that advertising sales took place in Ireland and, as such, was not subject to tax in the UK. Google generated $18 billion in revenue from the UK between 2006 and 2011 but paid just $16 million in UK corporate taxes over the same period.
Commenting, a Google spokesman said “It’s clear from this report that the Public Accounts Committee wants to see international companies paying more tax where their customers are located, but that’s not how the rules operate today … We welcome the call to make the current system simpler and more transparent.”
There will soon be updated materials relating to whistleblowing on the Simply-Docs website – watch this space!