Google’s tax deal under pressure


After a fair amount of controversy, the European Competition Commissioner has stated that she is willing to investigate Google’s current tax arrangements in the UK if any further complaints are to be made against the technology giant.

The statement was made after the long-running argument over Google’s tax affairs intensified. The multinational technology company has always had a reputation for dodging legislation and dabbling in tax avoidance, but a recent settlement is what has sparked many to investigate Google even further. In the last few weeks, Google agreed to pay a monumental £130 million back to HMRC, which it stated as being the “full tax due in law” dating back to 2005.

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Too good a deal to be true?

Google has since written to the Financial Times defending the deal, stating that it fully complies with the law. Peter Barron, the company’s European public affairs chief stated that “… we are paying the full amount of tax that HMRC agrees we should pay… Google complies with the law.” However, many believe the deal to be too good to be true; Competition Commissioner for the EU, Margrethe Vestager, is one of many. Talking to the BBC, she stated that “If we find that there is something to be concerned about… then we will take a look.” With the SNP economy spokesman already sending a letter calling for an investigation into Google, it’s likely to be only a matter of time before things escalate even further.