Google Inc faces another grilling over its tax affairs from a committee of British lawmakers on Thursday who have called the company back after questions were raised about testimony given in an earlier hearing.<\/p>\n
Corporate tax avoidance has become a major issue in Britain, where there are concerns over rising government debt and accusations from lawmakers that the UK tax authority has adopted a light touch approach to taxing big businesses.<\/p>\n
Google’s Northern Europe boss, Matt Brittin, was called to testify to the Public Accounts Committee (PAC) in November about Google’s low UK tax bill.<\/p>\n
From 2006 to 2011, Google generated $18 billion in revenues from the UK, according to statutory filings, and paid just $16 million in taxes.<\/p>\n
Brittin told the PAC Google was not taxed on the profits of its core advertising business in Britain, because all UK sales were conducted from Ireland.<\/p>\n
Reuters revealed that the Internet search giant had described its London offices on its website as a base for sales teams and advertised dozens of London-based sales vacancies.<\/p>\n
Committee chairwoman, Margaret Hodge said the company had questions to answer.<\/p>\n
“When Google appeared before the Committee last year we were told they were not selling in the UK. There appears to be a clear discrepancy between that and the evidence that has now been uncovered by Reuters,” she said.<\/p>\n
“This hearing is their chance to explain themselves.”<\/p>\n
Google is just one of a raft of companies including Apple Inc., Microsoft, Starbucks and Amazon.com, whose tax affairs have come under scrutiny.<\/p>\n
All the companies say they follow international tax rules.<\/p>\n
On Wednesday, Amazon.com Inc, which was also called to testify at the November PAC hearing, attracted criticism from politicians over its tax bill for 2012.<\/p>\n
Accounts published on Wednesday showed Amazon.co.uk Ltd, Amazon’s main UK unit paid $3.7 million of taxes on its 2012 income. Amazon Group had UK sales of $6.5 billion (4 billion pounds) in 2012.<\/p>\n
Google’s auditor, Ernst & Young, and representatives from the UK tax authority are also being called to answer questions.<\/p>\n
(Reporting by Tom Bergin; Editing by Elaine Hardcastle)<\/p>\n
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