Philip Hammond was yesterday accused of allowing Google to escape paying its fair share of corporation tax.
The internet giant allegedly avoided paying an estimated £1.5billion in Britain – enough to fund 60,000 more NHS nurses.
Chancellor Mr Hammond was grilled by Labour counterpart John McDonnell in the Commons over the scandal, which has sparked fresh anger at the firm.
He asked: “Why is the Chancellor, year on year, letting Google the tax avoider off the hook?
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“When will the Chancellor tackle the scandal of Google’s tax avoidance?” Mr Hammond claimed the issue was a “bit more complex”. He insisted the Government had announced plans for a Digital Services Tax “to address the challenge”.
The Chancellor said the G20 group of rich countries, meeting this week, is “looking for a new way to allocate profits appropriately”. But Mr McDonnell replied: “After nine years in Government, that smacks of an excuse.”
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The £1.5billion Google allegedly missed paying was estimated by campaign group the Tax Justice Network in an analysis for the Mirror, published on Monday .
It would be almost 24 times the £67million the US firm said it paid in corporation tax last year.
Google refused to comment on the TJN study.
But it said: “We pay the majority of our taxes in our home country, as well as all the taxes due in the UK. We are investing in the UK, including starting work on new offices in King’s Cross for 7,000 staff.”
