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You can find the current article at its original source at http://www.theguardian.com/technology/2016/jan/26/google-tax-deal-was-purely-decision-of-hmrc-downing-street-stresses
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| Google tax deal was purely HMRC decision, Downing Street stresses | |
| (about 1 hour later) | |
| Downing Street has further distanced itself from the deal to make Google pay £130m of tax, stressing that it was purely an operational decision of HM Revenue and Customs officials. | Downing Street has further distanced itself from the deal to make Google pay £130m of tax, stressing that it was purely an operational decision of HM Revenue and Customs officials. |
| Amid heavy criticism of the government for extracting so little from Google, David Cameron’s official spokesman said it was a good agreement but again refused to repeat the verdict of George Osborne, the chancellor, that it was a “major success”. | Amid heavy criticism of the government for extracting so little from Google, David Cameron’s official spokesman said it was a good agreement but again refused to repeat the verdict of George Osborne, the chancellor, that it was a “major success”. |
| Number 10 has sounded more lukewarm than the Treasury about the deal, which means Google has paid an effective tax rate of just 3% over the last decade on profits of an estimated £7.2bn - in comparison with the usual corporation tax rate of more than 20%. | Number 10 has sounded more lukewarm than the Treasury about the deal, which means Google has paid an effective tax rate of just 3% over the last decade on profits of an estimated £7.2bn - in comparison with the usual corporation tax rate of more than 20%. |
| Cameron’s deputy official spokesman insisted that the prime minister wais of the same mind as Osborne about the deal but the government appears to have significantly toned down its enthusiasm for it in the face of a public backlash. | Cameron’s deputy official spokesman insisted that the prime minister wais of the same mind as Osborne about the deal but the government appears to have significantly toned down its enthusiasm for it in the face of a public backlash. |
| He also stressed that the decision was taken by HMRC alone, meaning Cameron and Osborne had no role in signing it off. | He also stressed that the decision was taken by HMRC alone, meaning Cameron and Osborne had no role in signing it off. |
| “No ministers were involved in agreeing this deal. It is done by HMRC on an operational basis,” he said. “The key point on this is that HMRC is satisfied with the tax due and what it has collected.” | “No ministers were involved in agreeing this deal. It is done by HMRC on an operational basis,” he said. “The key point on this is that HMRC is satisfied with the tax due and what it has collected.” |
| On Tuesday, John McDonnell, the shadow chancellor, wrote to Osborne calling for him to set out the details of the deal with the internet giant. | On Tuesday, John McDonnell, the shadow chancellor, wrote to Osborne calling for him to set out the details of the deal with the internet giant. |
| Boris Johnson, the London mayor, also made another critical intervention, after previously having suggested the sum paid was “derisory”. | Boris Johnson, the London mayor, also made another critical intervention, after previously having suggested the sum paid was “derisory”. |
| He told Sky News: “What everyone wants is a bit of clarity on where their profits are being made and an agreement on how much they should be paying. | He told Sky News: “What everyone wants is a bit of clarity on where their profits are being made and an agreement on how much they should be paying. |
| “At the moment what is worrying is that we don’t really have the transparency about it.” | “At the moment what is worrying is that we don’t really have the transparency about it.” |
| HMRC has insisted that Google will pay “the full tax due in law” as a result of the deal. | HMRC has insisted that Google will pay “the full tax due in law” as a result of the deal. |
| Jim Harra, HMRC’s business tax director general, said Google had agreed to pay all the money due. | Jim Harra, HMRC’s business tax director general, said Google had agreed to pay all the money due. |
| He told BBC Radio 4’s The World at One: “We only accept the full amount of tax, interest and penalties that is due, otherwise if we can’t reach an agreement on that amount we will go to tribunal. We certainly don’t apply any rate of tax other than the statutory rate that parliament has published.” | He told BBC Radio 4’s The World at One: “We only accept the full amount of tax, interest and penalties that is due, otherwise if we can’t reach an agreement on that amount we will go to tribunal. We certainly don’t apply any rate of tax other than the statutory rate that parliament has published.” |
| Responding to claims that the French are asking for a much higher sum from Google, Harra said: “We will have to wait and see what the outcome of any inquiry in France is; there has certainly been no disclosure that there has been any outcome. | Responding to claims that the French are asking for a much higher sum from Google, Harra said: “We will have to wait and see what the outcome of any inquiry in France is; there has certainly been no disclosure that there has been any outcome. |
| “I am satisfied that we have carried out a thorough investigation and we have collected the amount of tax that is due under the law and I am quite happy to be held to account for what we have done.” | “I am satisfied that we have carried out a thorough investigation and we have collected the amount of tax that is due under the law and I am quite happy to be held to account for what we have done.” |
| A spokesman for the tax authority said on Tuesday that it was only able to confirm details of the deal because Google had given it special permission. | A spokesman for the tax authority said on Tuesday that it was only able to confirm details of the deal because Google had given it special permission. |