HMRC’s recent special tax deal with Google is being questioned. Google’s accounts showed it made sales of £4.5 billion in the UK in 2014, with a profit rate of about 25% that’s taxable profit of around £1.1 billion to most people. But HMRC has given Google a settlement to pay a decade of back taxes for just £130 million. An effective tax rate of just 3% according to the debate on it in Parliament. Rightly or wrongly the Government risks giving the impression there is one low-tax rule for big US companies paid for by another high-tax rule for small UK business.
Tax Barrister, Accountant