Google may face Parliament over taxes

There are calls for the tech firm to answer questions over the way it pays tax in the UK

There are calls for the tech firm to answer questions over the way it pays tax in the UK, with one MP calling it ‘entirely improper and immoral’

Google execs may have to go in front of Parliament to answer questions on how it pays its tax.

According to The Independent, a member of the Treasury Select Committee claimed it was ‘entirely improper and immoral’ that Google paid £6 million in tax in the UK on a turnover of £395 million.

It is claimed Google shifts its money to Bermuda in order to pay a lower rate of tax – but no one is claiming that is illegal. The claims appear to be more that it is immoral to do so, with a petition encouraging the tech giant to ‘pay more’ attracting 45,000 signatures.

Google execs have made the point in the past that in order for the company to stump up more cash it would need to be a voluntary action – and that’s not the sort of thing shareholders like to hear about.

When we approached Google for a statement, we were told “We make a substantial contribution to the UK economy through local, payroll and corporate taxes. We also employ over a thousand people, help hundreds of thousands of businesses to grow online and invest millions supporting new tech businesses in East London. We comply with all the tax rules in the UK.”