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| Google boss claims he does not know his salary in Commons grilling | Google boss claims he does not know his salary in Commons grilling |
| (35 minutes later) | |
| In the early stages of a grilling over Google’s tax affairs, the internet company’s European boss was asked to tell MPs what he was paid – but said he could not disclose the figure because he didn’t know how much he earned. | In the early stages of a grilling over Google’s tax affairs, the internet company’s European boss was asked to tell MPs what he was paid – but said he could not disclose the figure because he didn’t know how much he earned. |
| Matt Brittin was appearing before the public accounts committee in the aftermath of a row about £130m in back taxes it agreed to pay in a deal that caused a public outcry, despite being described as a victory by George Osborne. | |
| At the beginning of the session, Brittin, the president of Google Europe, declined to respond to a request to say how much he was paid, saying: “I’ll happily disclose that if it’s a relative matter for the committee.” | At the beginning of the session, Brittin, the president of Google Europe, declined to respond to a request to say how much he was paid, saying: “I’ll happily disclose that if it’s a relative matter for the committee.” |
| The committee chair, Meg Hillier, demanded to know it, but Brittin said he did not have the figure. | The committee chair, Meg Hillier, demanded to know it, but Brittin said he did not have the figure. |
| Related: Google's tax affairs: the players and questions they need to answer | Related: Google's tax affairs: the players and questions they need to answer |
| “You don’t know what you get paid, Mr Brittin?” she said to laughter in the room. | “You don’t know what you get paid, Mr Brittin?” she said to laughter in the room. |
| She continued: “Out there, our constituents are very angry, they live in a different world clearly to the world you live in, if you can’t even tell us what you are paid. | She continued: “Out there, our constituents are very angry, they live in a different world clearly to the world you live in, if you can’t even tell us what you are paid. |
| “It seems a bit of a PR disaster if you didn’t have the nous to realise in the same week that taxpayers were filing their tax returns, and sweating over a little bit of bank interest and getting it in on time, and you announce this as a good deal.” | “It seems a bit of a PR disaster if you didn’t have the nous to realise in the same week that taxpayers were filing their tax returns, and sweating over a little bit of bank interest and getting it in on time, and you announce this as a good deal.” |
| Brittin responded: “I understand the anger and understand that people when they see reported that we are paying 3% tax would be angry. But we’re not. We’re paying 20% tax.” | Brittin responded: “I understand the anger and understand that people when they see reported that we are paying 3% tax would be angry. But we’re not. We’re paying 20% tax.” |
| Asked if the £130m settlement was fair, Tom Hutchinson, the vice-president of Google Inc, told MPs that the settlement was. However, he could not explain why the company had not paid its tax for nearly a decade. “That is a good question,” he said. | Asked if the £130m settlement was fair, Tom Hutchinson, the vice-president of Google Inc, told MPs that the settlement was. However, he could not explain why the company had not paid its tax for nearly a decade. “That is a good question,” he said. |
| Google executives also disclosed that the firm paid £112m in tax and interest of £18m for a 10-year period following negotiations with HMRC officials. | Google executives also disclosed that the firm paid £112m in tax and interest of £18m for a 10-year period following negotiations with HMRC officials. |
| The chancellor had claimed Google’s settlement was thanks to his diverted profits tax (DPT), which was introduced last year to target multinationals artificially routing profits overseas. | The chancellor had claimed Google’s settlement was thanks to his diverted profits tax (DPT), which was introduced last year to target multinationals artificially routing profits overseas. |
| But Hutchinson said: “My understanding is that it [the tax deal] had nothing to do with the DPT.” | But Hutchinson said: “My understanding is that it [the tax deal] had nothing to do with the DPT.” |
| The company has been accused of effectively paying just 3% tax and there have been calls for the arrangement to be investigated by the National Audit Office and the European commission. | The company has been accused of effectively paying just 3% tax and there have been calls for the arrangement to be investigated by the National Audit Office and the European commission. |
| MPs also addressed Google’s decision to set up its base in Ireland for tax purposes. The company insists its £4.6bn of sales to UK advertisers are conducted by some of its 5,000-strong workforce in Dublin. | MPs also addressed Google’s decision to set up its base in Ireland for tax purposes. The company insists its £4.6bn of sales to UK advertisers are conducted by some of its 5,000-strong workforce in Dublin. |
| Brittin said that the company’s structures have changed radically over the last decade, with Google only employing 160 employees in the UK when the tax investigation began in 2005. | Brittin said that the company’s structures have changed radically over the last decade, with Google only employing 160 employees in the UK when the tax investigation began in 2005. |
| Now more than 4,000 staff are working for its UK operation and there is a £1bn headquarters being built in King’s Cross, north London, he said. | Now more than 4,000 staff are working for its UK operation and there is a £1bn headquarters being built in King’s Cross, north London, he said. |
| The committee member Caroline Flint asked whether tax issues arose during dozens of meetings held between Google and government ministers. “I have no briefings of any meetings around tax conversation with ministers”, said Brittin. But he added: “I’d be surprised if tax hadn’t come up from time to time.” | The committee member Caroline Flint asked whether tax issues arose during dozens of meetings held between Google and government ministers. “I have no briefings of any meetings around tax conversation with ministers”, said Brittin. But he added: “I’d be surprised if tax hadn’t come up from time to time.” |
| Brittin insisted there had been no secret deal between the Treasury and Google over how to announce the deal. |