Date set for Google, E&Y PAC recall

Google, Ernst & Young and HMRC are to be recalled to give evidence to the Public Accounts Committee (PAC) next Thursday, 16 May, as part of the review of tax avoidance and large corporations.

Matt Brittin, Google's vice president for sales and operations for Northern and Central Europe and John Dixon, head of tax at E&Y, who are Google's auditors, have been summoned to attend. Lin Homer, HMRC chief executive, and Jim Harra, HMRC director general business tax have also been called up for the session.

The move follows the identification of apparent inconsistencies in the evidence Google gave to the PAC's original hearing in November 2012. At the time, Brittin said that no Google staff made sales from the UK, and that all sales operations were based in Dublin, a decision which affected the rates of corporation tax paid by the company.

Brittin said that Google staff in the UK were responsible for helping people make the most of the web, while the selling of advertising was all handled in Ireland.

A subsequent investigation by Reuters found that Google's own corporate website claims sales teams are based in London, and advertises jobs for London-based sales staff, whose duties include 'negotiating deals', closing 'strategic and revenue deals' and achieving 'quarterly sales quotas'. Other advertisements and information from LinkedIn and social media appeared to confirm this.

PAC chair Margaret Hodge said she wanted to call back the Google executives 'to give them a chance to explain themselves and to ensure that actually what they told us first time around is not being economical with the truth.'

Pat Sweet | Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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