British PM David Cameron Defends Google Tax Deal
LONDON : British Prime Minister David Cameron defend the tax deal struck with US Internet giant Google as he came under fire in parliament on Wednesday.
Google is to pay 130 million ($185.4 million) in back taxes to Britain following a government inquiry into its tax arrangements, a company spokeswoman said.
Cameron was grilled on the deal in the House of Commons by opposition Labour leader Jeremy Corbyn.
The left-wing veteran claimed Google is paying an effective tax rate of three percent on its profits made in Britain. The 2015-2016 corporation tax rate is 20 percent.
“I do dispute the figures that you give,” Cameron replied. “But I am absolutely clear that no (British) government has done more than this one to crack down on tax evasion and aggressive tax avoidance.”
Corbyn said workers filling in their tax returns “do not get the option of 25 meetings with 17 ministers to decide what their rate of tax is.
“Why is there one rule for big multinational companies and another for ordinary, small businesses and self-employed workers?”
Cameron said he was “genuinely angry about what happened to Google”under previous Labour governments.