Google’s Eric Schmidt ‘perplexed’ over UK tax debate

Google’s executive chairman Eric Schmidt stated that he was bewildered by the affirmation that according to the corporate documents, they did not pay proper amount of taxes.

Between 2006 and 2011 Google paid £10m in UK corporate taxes on revenues.

According to Mr. Schmidt the government had to change its tax systems, otherwise companies would never start paying more taxes.

Speaking on BBC Radio 4′s Start the Week, he said: “What we are doing is legal.

If the British system changes the tax laws then we will comply. If the taxes go up we will pay more, if they go down we will pay less. That is a political decision for the democracy that is the United Kingdom.”

On the other hand, Margaret Hodge, the head of the Parliamentary Public Accounts Committee, called for a new committee, which had to oversee the tax arrangements of major firms.

In her opinion, the committee had to hear evidence from companies in secret, so that they could not hide the affairs behind confidentiality rules.

European Union leaders gathered last week and took the decision to monitor the situation using information exchange.

The chairman of Google called for a debate on tax reforms claiming taxes had to be paid not only on revenues but on company’s profits.

“Our hope is to move the debate forward, with everyone engaged constructively in developing a clearer, simpler system – one in which companies that abide by the law know that the politicians who devised the rules are willing to defend and commend them.”

 

Written by Legal Author

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