

MP on Google tax avoidance scheme: 'I think that you do evil' - colin_jack
http://www.guardian.co.uk/technology/2013/may/16/google-told-by-mp-you-do-do-evil

======
DanBC
Google really needs to understand the culture.

No-one minds if you avoid[1] part of your tax. It's expected behaviour. But
Google have taken it to extremes.

People usually say "What's the problem? They're obeying the law".

But Google (and others) might not be obeying the law. They hire expensive huge
companies who specialise in tax avoidance. These schemes are borderline legal,
sometimes illegal.

When the companies are caught they make a deal to repay some of the tax, and
agree not to do it again.

Starbucks claim that they make no profit in England. That's clearly nonsense.
Amazon paid about £3.5million in tax, but received £2.5million in government
grants.

Avoid a bit of tax, just stop taking the piss.

------
squidi
Unethical != Evil

~~~
bitcartel
Google's tax strategy is legal, but disguising UK sales as Irish sales is not.

 _"Google vice-president Matt Brittin insisted he stood by evidence he gave
last year that all the firm's advertising in Europe was sold through its
offices in Ireland.

But in a series of testy exchanges, the committee chairman, Margaret Hodge,
said his claims were contradicted by documentation MPs had seen and evidence
from a "stream" of whistleblowers.

"It was quite clear from all that documentation that the entire trading
process and sales process took place in the UK," she told him."_

[http://www.guardian.co.uk/technology/2013/may/16/google-
deni...](http://www.guardian.co.uk/technology/2013/may/16/google-denies-
disguise-operates-tax)

 _"The committee had also been contacted by a senior salesman who Ms Hodge
said was paid a "modest" salary, but three or four times that in commission
for sales and for "closing deals".

"This is somebody, a senior salesman, who said he was making sales in the UK.
This is a UK sale and should be subject to UK tax," she added.

...Mr Brittin said that although sales staff in the UK were promoting Google
and encouraging people to spend money, the transaction would take place in
Ireland.

But Ms Hodge replied: "We all accept the billing is in Ireland. If sales
activity is taking place in the UK, you are misleading both Parliament and the
taxpayers in suggesting that is not happening."_

[http://www.independent.co.uk/news/uk/politics/hmrc-are-
being...](http://www.independent.co.uk/news/uk/politics/hmrc-are-being-
bamboozled-by-google-mps-confront-search-giant-over-devious-attempt-to-avoid-
paying-uk-tax-8618695.html)

