Google face of angry, on Thursday the British Parliament to investigate their tax and misleading congressional testimony last year, fueled tax debate has risen to the top of the British political agenda.
Google Northern Europe boss Matt Brittin, called back to testify in the parliamentary Public Accounts Committee (PAC) Reuters investigation, the role of the staff employed by the company's sales in London, even though he had told the committee in November, the staff of the United Kingdom is not "sold" to the UK customers.
Brittin said the company has been investigated by the British tax authorities on transfer pricing services transactions between Google UK and Google, but added that he thinks Google full compliance with UK tax.
He also denied misleading Parliament in November.
But legislators questioned the authenticity of November last Thursday's testimony and opinions.
"It really does not wash," said Stephen Buckley, PAC and the ruling Conservative Party members.
Committee chairwoman Margaret Hodge said that Google does not live up to its original "do not be evil" motto.
"You mean you do not be evil company, I think you do evil, you are using smoke and mirrors to avoid paying taxes," she said, the company is engaged in "detour calculation, and, in my view, immoral behavior." .
In November, Brittin told PAC "No one (in the UK) to sell. He said that only participation in promotions of all UK sales staff by Google Ireland and the United Kingdom.
This arrangement allows the Google home most of the sales revenue from the tax, because Google Ireland bulk of its turnover, a subsidiary of Bermuda.
Reuters report said, the staff of the Google ads in London "negotiate" and "off" transactions and LinkedIn profiles dozens of staff claimed that they engaged in such work.
Committee chairwoman Margaret Hodge said that the Committee has also been close by the informer had said they worked in London for Google to sell advertising.
What is being sold?
On Thursday, said Brittin, UK staff and provide discounts to customers to encourage them to purchase and sales commissions part of the staff salaries, but he said, in fact, Google Ireland opponents of the legal profession does not mean he November review is not accurate.
"The British team are selling, but they do not accept."
Google's auditors Ernst & Young has also been called to testify. John Dixon, head of tax policy, to promote the sales of products and end in the UK, which will very likely in the London-based company, to create a gray area between a taxable.
He refused to say, Google arrangements exist, no one in the United Kingdom tax.
Corporate tax avoidance has become a major problem in the UK, where there are worries about rising government debt and accused members of Congress, the British tax authorities have adopted the method of touch, a tax to large enterprises.
From 2006 to 2011, Google generated $ 18 billion dollars in revenue from the UK, based on the statutory filings, and paid only $ 16 billion dollars in tax revenue.
Google is just a company, including Apple, Microsoft, Starbucks and Amazon, are subject to review tax matters raft.
All companies say they follow the international tax rules.
 
 



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