Google’s Unfair Sweetheart Deal
The big tax story of recent times is Google’s sweetheart tax deal with HMRC.
While HMRC are trying to scupper plans for any small business trying to make ends meet, taxing them wherever possible, sending out incorrect accelerated payment notices, using scare tactics and generally making it as difficult as possible for any small business to succeed; Google has pulled off the biggest sweetheart deal of modern times.
Paying a reported measly £130m for on UK profits of £7.2bn over 10 years, works out to a corporation tax rate of only 2.77%.
Our Chanceller Mr George Osbourne somehow sees the deal as a “really positive step”.
“This is a major success of our tax policy. We’ve got Google to pay taxes and I think that is a huge step forward and addresses that perfectly legitimate public anger that large corporations have not been paying tax. I think it’s a really positive step … I think it’s a big step forward and a victory for the government.”
I would like to see what tax policy the chancellor has been following – as it sure is different to everybody else’s – apart from Apple, Amazon, Facebook….Can you see the pattern?
Shadow chancellor, John McDonnell, was quick to call the deal a “derisory” payment, heavily criticising HMRC over the “relatively small amount” and has demanded details of the “arrangement”.
It seems pretty obvious to me that the government is scared of big companies moving their businesses elsewhere if they had to pay the same as you and I. Having a tax system that is far too complicated gives the government all the tools they need to make these deals and that is just not fair!
The easiest way would be to simplify the tax system and stop the loopholes – but this is not going to happen anytime soon as too many big corporations will lose out, and in turn, so would the government.
I guess you can’t blame Google – any successful business would want to minimise their tax bills, so why don’t you?