Google £130m UK back-tax deal lambasted as ‘derisory’ by expert
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Google’s attempt to counter criticism of its tax arrangements by agreeing to make a back payment of £130m in the UK unravelled after claims that the internet giant had effectively paid an annual rate of corporation tax of just 2.77% over the last decade. Most British businesses currently pay corporation tax on 20% of their profits. But even after the extra payment, the internet giant is said to have paid just £200m in tax since 2005, on estimated profits in the UK of £7.2bn.
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So Google has back-negotiated a 2.77% tax-rate for the last 10 years. Is it reasonable or just that a huge corporation making billions should pay less tax than an individual earning an average salary?