Miliband to tackle Google over tax
LABOUR leader Ed Miliband will today tell technology giant Google “to its face” that it should pay more tax.
Days after Prime Minister David Cameron ducked the chance to tackle the company’s chairman Eric Schmidt, Mr Miliband will challenge Google head-on at a conference hosted by the internet search engine and attended by Mr Schmidt.
Last night Mr Miliband outlined the message that he would send, saying: “Google shouldn’t be going to extraordinary lengths to avoid paying its taxes.” But he also criticised those who suggest it was up to lawmakers to crack down on legal tax avoidance and that companies such as Google were doing nothing wrong. “(Google) has an obligation to do more than simply comply with the letter of the law,” Mr Miliband said.
“Google has done much to open up markets and opportunities for entrepreneurs... But it also has an obligation to wider society.”
A senior Labour source said: “He is going to be saying this to Google’s face, unlike David Cameron”.
While Mr Schmidt is due to attend the conference, it is not known if he will be present for Mr Miliband’s speech.
Google has faced stern criticism amid claims that it is not paying enough tax in the UK. Politicians hit out at the technology firm for outsourcing advertising sales to Ireland, which has a much lower rate of corporation tax than the UK.
Mr Schmidt was in Downing Street this week for a meeting of the Coalition’s Business Advisory Group, of which he is a member.
At t he meeting, Mr Cameron outlined his plans to appeal to the international community for concerted action on aggressive tax avoidance. But it is understood he did not discuss Google’s tax affairs directly with Mr Schmidt.