12:41 13 June 2013
UK MPs have expressed the wish for an investigation to take place into the tax affairs of search engine giant Google. There have been claims made by some in regards to the firm’s arrangements when it comes to an area of its taxes.
This comes as the Public Accounts Committee has looked into Google’s UK taxes and has called for an investigation to be carried out by HMRC.
The committee of MPs, with MP Margaret Hodge as Chair, relate to sales in the Republic of Ireland, saying that Google’s claim on this matter was ‘deeply unconvincing’.
Google has stated that it obeys UK tax regulations.
A spokesperson from Google said: “It's clear from this report that the Public Accounts Committee wants to see international companies paying more tax where their customers are located, but that's not how the rules operate today.
“We welcome the call to make the current system simpler and more transparent.”
The Public Accounts Committee stated that it was not focusing on companies such as Google in particular, but that the matter was ‘illustrative of a much wider problem’.
A number of firms have been in the spotlight over UK taxes of late. Aside from Google, Starbucks as well as Amazon went before the committee last year.
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