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MPs challenge Google over UK tax reporting | MPs challenge Google over UK tax reporting |
(35 minutes later) | |
The internet giant Google has been challenged by MPs over the way it reports its income for tax. | The internet giant Google has been challenged by MPs over the way it reports its income for tax. |
The chair of the Public Accounts Committee, Margaret Hodge, said whistleblowers had told her that Google had sold advertising within the UK and invoiced customers in the UK. | The chair of the Public Accounts Committee, Margaret Hodge, said whistleblowers had told her that Google had sold advertising within the UK and invoiced customers in the UK. |
Google had earlier said that UK customers paid Google in Ireland. | Google had earlier said that UK customers paid Google in Ireland. |
"No one in the UK can execute transactions," said Google's head of sales in Northern Europe, Matt Brittin. | "No one in the UK can execute transactions," said Google's head of sales in Northern Europe, Matt Brittin. |
"No money changes hands," he said, despite the fact that he employed sales staff in Britain. | "No money changes hands," he said, despite the fact that he employed sales staff in Britain. |
But Ms Hodge said: "It was quite clear from all that documentation that the entire trading process and sales process took place in the UK." | |
She read from the official guide to parliamentary procedure, Erskine May: "A person prevaricating or giving false evidence can be considered to be in contempt of the House." | She read from the official guide to parliamentary procedure, Erskine May: "A person prevaricating or giving false evidence can be considered to be in contempt of the House." |
And she said: "We will continue to have whistleblowers until we get to the bottom of the truth about all this." | |
Google's sales in the UK are worth £3.2bn, but most are routed through Dublin. In 2011 it paid £6m in UK corporation tax. | Google's sales in the UK are worth £3.2bn, but most are routed through Dublin. In 2011 it paid £6m in UK corporation tax. |
European headquarters | |
Mr Brittin maintained that any advertiser in Europe would deal directly with Google in Dublin, which employs some 3,000 staff. | |
"When we came to Europe, we set up Dublin as our European headquarters," said Mr Brittin | "When we came to Europe, we set up Dublin as our European headquarters," said Mr Brittin |
"We wanted to be able to contract with customers across the whole of Europe, not just the UK. | |
"Any customer that spends with us, they have to buy from Ireland, because that's where the intellectual property sits." |