HMRC and Google (Settlement) Debate

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Department: HM Treasury

HMRC and Google (Settlement)

Anne Main Excerpts
Monday 25th January 2016

(8 years, 3 months ago)

Commons Chamber
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David Gauke Portrait Mr Gauke
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The United Kingdom does not engage in special deals with any taxpayer. When accusations to that effect were made before, Sir Andrew Park, a retired High Court judge, investigated them on behalf of the National Audit Office and concluded that in every case he had investigated the settlement was reasonable and the overall effect of the arrangements was good. For the very reasons I set out, I cannot comment on the individual matter beyond what is in the public domain. I do believe that there is an important principle here—that tax should be collected on the basis of the law, and that a Department that is independent from Ministers should be able to make the assessment of the right level of tax due under the law without politicians interfering in operational matters. I hope that that has the support of Members of all parties.

Anne Main Portrait Mrs Anne Main (St Albans) (Con)
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Will my hon. Friend assure me that some investigation will be made into how HMRC managed to allow this to go on for such a long period of time? Given that this started under the last Government and it has taken this Government to tackle the issue and bring it to book, will my hon. Friend help me to understand what lessons should be learned?

David Gauke Portrait Mr Gauke
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The information is in the public domain that HMRC launched an inquiry into the tax affairs of Google in 2009. This is a complex matter, but I am pleased that that inquiry has reached a conclusion. It would be fair to say that the progress made on bringing in a diverted profits tax and the reforms involved in the base erosion and profit shifting project appear to represent a shift in the behaviour of a number of companies, which is to be welcomed.