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New analysis: why Google is paying just 2% tax rate in the UK

The Daily Mirror newspaper in the UK is running a story entitled Google is paying even LESS tax than thought as UK deal is just 2%. 

This is based on a new TJN analysis, based not on current tax rules but on what Google might pay if the UK were to adopt a fairer tax system that we’ve advocated. We analysed Google’s tax settlement in the UK for 2014, and we find that – even after a deal with the UK tax authorities to pay a little extra tax – just one tenth of the Google’s real profits are actually declared for tax purposes in the UK. This results in a real, effective tax rate of around two per cent.

Why Google (and other multinationals) are still not paying their fair share of corporation tax

This guest blog by Tommaso Faccio of Nottingham business school complements a guest blog we ran on Friday by Sol Picciotto, also about Google’s all-important tax affairs.

Why Google (and other multinationals) are still not paying their fair share of corporation tax

Google says that it pays the tax required by every company in every country it operates. This is true apart from where the odd tax audit has resulted in tax settlements which have marginally increased the corporation tax it paid in some countries. 

We learned in last week’s Public Accounts Committee meeting in the UK, with representatives from Google and HMRC [the UK tax authorities] how current international tax rules set by the Organisation for Economic Cooperation and Development (OECD), allow Google to earn revenue from UK (and pretty much all non-US) customers and have them booked in Ireland, where the associated profits are taxed at a lower corporation tax rate (12.5%) than would be applied in most countries.

Report: a proposal to adopt unitary tax in Israel

April 21, 2015   Blog, Taxing corporations

TJN-IsraelFrom TJN Israel, a new report entitled A Proposal to Adopt a Reform in Taxing Multinational Corporations in Israel – Unitary Taxation. The summary is here, in English, and the longer report, in Hebrew, is here.

The report explores why Israel’s existing tax regime has difficulties in combating tax evasion and avoidance by multinational companies (MNCs) and why a unitary tax approach could probably be a better solution to the existing system, which relies heavily on the ‘arm’s length’ method.

Report: better tax rules could boost developing country corporate tax revenues by 100%

Eng_governments exluded_twitterA new report from Oxfam, entitled BUSINESS AMONG FRIENDS: Why corporate tax dodgers are not yet losing sleep over global tax reform.

It begins like this:

“Tax dodging by big corporations deprives governments of billions of dollars. This drives rapidly increasing inequality. Recent G20 and OECD moves to clamp down on corporate tax dodging are a first step, but these have woken up a legion of opponents set on undermining them.

Survey: the corporate tax debate is biting the corporations

From tax advisers Taxand, who have just conducted a global survey of corporate Chief Finance Officers (CFOs):

  • 76% of survey respondents said that the exposure in the media of corporate tax planning activity has a detrimental impact on a company’s reputation
  • 31% said that the intense media focus on tax planning had made them change their approach to tax planning.
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