This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/uk-35447152
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Google row: Lord Lawson calls for corporate tax reform | Google row: Lord Lawson calls for corporate tax reform |
| (about 2 hours later) | |
| Lord Lawson has called for radical reform of how big companies are taxed, in response to the row about Google's arrangements in the UK. | |
| The former Conservative chancellor told the Daily Telegraph corporation tax "has had its day" and should be replaced with a tax on sales. | The former Conservative chancellor told the Daily Telegraph corporation tax "has had its day" and should be replaced with a tax on sales. |
| It comes after an agreement for Google to pay £130m in tax dating back to 2005 was condemned as "derisory" by critics. | It comes after an agreement for Google to pay £130m in tax dating back to 2005 was condemned as "derisory" by critics. |
| The government and HMRC have both defended the deal. | The government and HMRC have both defended the deal. |
| Labour has called for the public spending watchdog, the National Audit Office, to investigate what it criticised as a "sweetheart deal". | Labour has called for the public spending watchdog, the National Audit Office, to investigate what it criticised as a "sweetheart deal". |
| 'Grossly unfair' | 'Grossly unfair' |
| Lord Lawson told the Telegraph: "It is profoundly unsatisfactory that corporation tax has to be collected from large multinational corporations by a series of ad hoc compromise deals, as we have once again seen with the Google affair. | Lord Lawson told the Telegraph: "It is profoundly unsatisfactory that corporation tax has to be collected from large multinational corporations by a series of ad hoc compromise deals, as we have once again seen with the Google affair. |
| "It is also grossly unfair on smaller businesses, who are unable to shift profits between tax jurisdictions and have to pay the full amount due under UK law." | "It is also grossly unfair on smaller businesses, who are unable to shift profits between tax jurisdictions and have to pay the full amount due under UK law." |
| Google tax row: What's behind the deal? | Google tax row: What's behind the deal? |
| Google's tax agreement came after years of criticism of it and other multinational firms over their tax arrangements in the UK and across Europe. | Google's tax agreement came after years of criticism of it and other multinational firms over their tax arrangements in the UK and across Europe. |
| The payment by Google, praised by Chancellor George Osborne as a "victory" for the government, covered money owed since 2005 and followed a six-year inquiry by HMRC. | The payment by Google, praised by Chancellor George Osborne as a "victory" for the government, covered money owed since 2005 and followed a six-year inquiry by HMRC. |
| Lord Lawson said the arrangement showed corporation tax should be replaced with "a much lesser tax, bolstered by a tax on corporate sales". | Lord Lawson said the arrangement showed corporation tax should be replaced with "a much lesser tax, bolstered by a tax on corporate sales". |
| He added: "While multinationals can artificially shift profits to whatever tax jurisdictions they choose, sales are where they are, and can't be shifted. | He added: "While multinationals can artificially shift profits to whatever tax jurisdictions they choose, sales are where they are, and can't be shifted. |
| "Instead of endless discussion at international conferences of one kind or another, the UK should take the lead in implementing this much-needed reform." | "Instead of endless discussion at international conferences of one kind or another, the UK should take the lead in implementing this much-needed reform." |
| Shadow chancellor John McDonnell has written to Mr Osborne demanding details of the Google settlement, while Meg Hillier, chairwoman of the Commons Public Accounts Committee, said it was "a small amount of money" for Google. | Shadow chancellor John McDonnell has written to Mr Osborne demanding details of the Google settlement, while Meg Hillier, chairwoman of the Commons Public Accounts Committee, said it was "a small amount of money" for Google. |
| Claims that the settlement amounted to a 3% tax rate have been rejected by officials and ministers. | Claims that the settlement amounted to a 3% tax rate have been rejected by officials and ministers. |
| Irish HQ | Irish HQ |
| A senior HMRC official insisted that it was collecting the "full tax due in law". | A senior HMRC official insisted that it was collecting the "full tax due in law". |
| Google, which makes most of its UK profits through online advertising, paid £20.4m in UK taxes in 2013. The value of its British sales that year was £3.8bn. | Google, which makes most of its UK profits through online advertising, paid £20.4m in UK taxes in 2013. The value of its British sales that year was £3.8bn. |
| The US company has its European headquarters in the Irish Republic, which has a lower corporation tax rate than the UK. | The US company has its European headquarters in the Irish Republic, which has a lower corporation tax rate than the UK. |
| It has also used company structures in Bermuda, where the corporation tax rate is zero, to shelter profits. | It has also used company structures in Bermuda, where the corporation tax rate is zero, to shelter profits. |