PM’S claim he raised tax with Google boss in doubt
DAVID Cameron is embroiled in a row with Google after he claimed he tackled the technology giant over its tax arrangements.
The Prime Minister said he had raised the issue “very directly” with Google chief Eric Schmidt.
However, sources within the company suggested there had instead been a “general discussion” on tax.
It also emerged Liberal Democrat leader Nick Clegg broached the issue with Mr Schmidt earlier this week as Labour leader Ed Miliband attacked the internet company on its stance.
Mr Miliband told the company he was “di s - appointed” by its practices.
Google responded to the criticisms, saying in a statement it wanted “a constructive debate and solution”.
Mr Cameron met Mr Schmidt earlier this week at a meeting of the Business Advisory Group, of which Mr Schmidt is a member.
Reports suggest while the issue of tax was discussed it was in the context of Mr Cameron’s plans to push for international co-operation on the issue at next month’s meeting of G8 leaders.
Mr Schmidt hit back saying “we don’t negotiate taxes, they are the law”.
Google is accused of paying £10 million in corporation tax in the UK between 2006 and 2011, despite revenues of £11.9 billion.
Worry over tax avoidance by global companies raised fresh questions over the SNP Government’s plan for an independent Scotland to set a 3% lower rate of corporation tax than the UK.