EUROPEAN MINISTERS want to drag George Osborne (pictured) into the European Parliamentary Committee to explain himself over the “very bad deal” that has been agreed between HMRC and Google.
The tax authority recently announced that Google has agreed to pay £130m in back taxes following a six-year investigation from the government department. The deal has been widely criticised by finance professionals, with shadow chancellor John McDonnell labelling it as a “sweetheart payment”.
French MEP Eva Joly told BBC Radio 4’s Today programme that the UK is “preparing itself to become a tax haven” for multinationals and has called for more transparency when these types of deals are announced.
“Information must be disclosed to the tax administration and the public as well,” said the vice chair of the Special European Parliamentary Committee on Tax Rulings, who added that the chancellor will be called by the committee to explain himself over the agreement.
“We want Mr Osborne… to come in front of our committee to tell us about the deal because it’s not fair competition,” continued the MEP.
Joly also said that the committee intends on hearing from the head of Google and the Italian finance minister, as it has been reported today that Italy is to agree a much tougher tax deal with the technology company.
The ATT had previously expressed concern that the legislation was overly complex and created unnecessary complications within the practical working of the new allowances
Introduced in 2013 to encourage R&D investment, the scheme allows UK businesses to pay only 10% corporation tax on profits derived from any UK or certain EU patents
Signed into law by president Barack Obama in 2010, the Dodd-Frank legislation has tightened regulation of the US financial system
Just when SMEs thought they knew the lie of the land in terms of the Brexit timescale, Theresa May has caught them by surprise. Salvador Amico of Menzies asks how SMEs should react to the news of a snap election on 8 June