Google chiefs could face British MPs over tax avoidance schemes

[Newsjock]

Source: The Independent

Google chiefs face the prospect of being hauled before MPs to explain themselves over their tax avoidance schemes, the Independent has learned.

A member of the Treasury Select Committee called the company’s practices, which saw it pay £6m in tax on a turnover of £395m last year, “entirely improper and immoral” and said he expects a Google exec to be called before MPs by next Easter.

... The company operates a scheme under which its Irish subsidiary employs Google UK as an agent, meaning the proceeds of sales made in the UK end up in Ireland. A commission of around 10 per cent is then paid back to Google UK. That fee is taxable once costs have been deducted.

Google Ireland then pays much of the money it makes to the internet giant’s Bermudan firm as a licensing fee, ensuring that a large portion of its turnover ends up in the tax haven. The process is entirely legal.

Read more: http://www.independent.co.uk/news/uk/politics/google-chiefs-could-face-mps-over-tax-avoidance-schemes-8036882.html

[Trillo]

1. I'd guess Romney does something similar.