HMRC and Google (Settlement) Debate

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Department: HM Treasury

HMRC and Google (Settlement)

Helen Jones Excerpts
Monday 25th January 2016

(8 years, 3 months ago)

Commons Chamber
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Helen Jones Portrait Helen Jones (Warrington North) (Lab)
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Does the Minister not accept that this deal with Google, which most of us believe to involve a corporation tax rate of less than 3%, simply encourages tax avoidance by companies? If the issue was the amount of economic activity and assets held by Google in the UK, why are the Government not prepared to test that in the courts if necessary, and call its bluff?

David Gauke Portrait Mr Gauke
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HMRC has been conducting an inquiry in this specific case for a number of years, and has reached the conclusion that it is satisfied with the position that Google has reached. As for the additional payment, it is based on the facts that HMRC has seen, and on the detailed inquiry and exhaustive work that it has undertaken over many years, not numbers drawn up on the back of an envelope.