New personal savings allowance, which allows people to earn up to £1,000 in interest tax free and is due to be introduced in April 2016, is too complex, warn tax experts February 14, 2016 Changes to the way savings are taxed, which are due to come into force this April, will be helpful for the majority of people but may prove tricky for some to get their heads around, tax experts have warned. The Low Incomes Tax Reform Group (LITRG) of the Chartered Institute of Taxation (CIOT) cautioned late last week [...]
Google tax row: Economists and accountants react to this morning’s hearing with the Public Accounts Committee, many concluding that the corporate tax system needs a revamp February 11, 2016 From how taxed chair of the Public Accounts Committee (PAC) Meg Hillier's patience was to Google's Europe president Matt Brittin's take-home pay, today's hearing between MPs and Google representatives was a true war of words. For some observers, though, the debate did not quite hit the mark. "The focus today around Google’s tax affairs misses the [...]
Google UK tax: Public Accounts Committee grilled Matt Brittin and HMRC over so-called sweetheart tax deal, as the tech giant argues that it pays a 19 per cent corporation tax rate on average worldwide February 11, 2016 Representatives from Google have defended the technology company's various subsidiaries in so-called tax havens in a hearing with the Public Accounts Committee (PAC), pointing out that the company paid corporation tax at an average rate of 19 per cent worldwide. Matt Brittin, president of Google Europe, Middle East and Africa, remarked that having a branch in Bermuda, despite the company having [...]
Google UK tax row: If the Public Accounts Committee mistakenly equate Google’s profits to its sales when discussing corporate tax deals today, they’ll be heading down a blind alley February 11, 2016 When the Public Accounts Committee grills Google and HM Revenue & Customs (HMRC) chiefs today, we may hear repetition of the claim that the technology giant is only paying a three per cent corporation tax rate compared to the 20 per cent everyone else pays. The MPs could do themselves a favour by not going down this blind [...]
Google UK boss Matt Brittin calls for international tax laws to be rewritten ahead of his Public Accounts Committee appearance February 11, 2016 The head of Google UK has called for "simpler, clearer" rules governing the international tax system – but insisted the business did not cut a "sweet-heart deal" with HMRC. Matt Brittin – who will today be grilled by MPs in the Public Accounts Committee – agreed reform was necessary "because it is important not only to [...]
Google tax row won’t slow UK’s booming digital economy, says digital minister Ed Vaizey February 11, 2016 The biggest US technology companies won’t be put off setting up shop in the UK following a backlash against Google’s tax arrangements, the digital minister Ed Vaizey has insisted. “Fast growing UK companies are trading elsewhere, but we obviously benefit from inward investment,” he told City A.M., as new figures revealed the UK’s digital technology economy grew [...]
Google tax row: Corporate behaviour and the UK’s tax code need to change – and urgently February 11, 2016 The tax affairs of multinational companies have dominated debate in recent weeks. Interest will likely spike again later today, when the Public Accounts Committee takes evidence from HMRC on the tax deals agreed with well-known global corporates. MPs will doubtless have some sharp questions to ask, reflecting increasing public anger around this complex issue. In an ever-more [...]
Google tax: British Chambers of Commerce call for simpler business taxes as MPs grill Google executives over sweetheart tax deal February 11, 2016 A simpler business tax system would eliminate the loopholes that lead to tax avoidance schemes, the British Chambers of Commerce (BCC) said today. The BCC's comments come as MPs on the Public Accounts Committee get ready to grill Google executives and HM Revenue & Customs (HMRC) bosses over the controversial "sweetheart" deal that saw Google hand over £130m [...]
Google UK tax row: Here’s what you need to know ahead of tomorrow’s Public Accounts Committee hearing on corporate tax deals February 10, 2016 At 10am tomorrow, representatives from Google and HM Revenue & Customs (HMRC) will face the unenviable task of talking tax deals with the Public Accounts Committee (PAC). Before it kicks off, here's our quick guide of what you need to know: HMRC I understand, but why are Google being brought in on this? The PAC undoubtedly [...]
HM Revenue & Customs (HMRC) has brought in over £2bn from tax avoidance scheme users since a rule change in 2014 allowed it to collect money upfront February 8, 2016 HM Revenue & Customs (HMRC) has collected over £2bn from tax avoidance scheme users since 2014, thanks to a rule change that makes it easier to collect disputed amounts upfront. The UK's tax authority today revealed that its use of accelerated payment notices, which were introduced under the Finance Act 2014, had allowed it to collect cash without [...]