Head of Google in Europe grilled by UK tax authorities

It follows widespread criticism of HMRC’s recent £130m tax deal with tech giant Google.

He also told MPs he understood public anger over reports of the internet giant’s tax payments, but insisted it paid tax at 20% like any other United Kingdom company.

“Some here in Britain have argued we should be paying much more tax given the sales we make in the UK”, he wrote.

Matt Brittin, the President of Google’s European, Middle Eastern and African arm, told the Public Accounts Committee that he was not sure what his basic salary even was.

It added that the United Kingdom is “actively engaged in the G20-OECD BEPS project and is pursuing the modernisation of global tax rules”.

The £130 million figure was “the conclusion of a six-year rigorous, independent tax audit in which we are paying tax at 20% like every other United Kingdom company”, he said.

Google remained adamant that its tax processes are fair and proper, but the MPs were sceptical about Google’s call for clarity when the company has equally complex tax structures.

Chairwoman Meg Hillier said that Mr Brittin must have “tin ears” if he did not understand why taxpayers were angered by the firm’s £130m tax settlement for 10 years of United Kingdom operations. We want to pay the right amount of tax.

“You don’t know what you get paid, Mr Brittin?” she said to laughter in the room.

MPs from the major parties have been scathing about the amount, describing it as paltry and an example of Google freeloading on tax payer-funded United Kingdom infrastructure.

“There was not a number that was thrown out by HMRC and not a number we negotiated down”, he said. They are just statements from politicians asking us to pay more money – politicians in many cases who, like this committee, would like to see a system where taxes paid are proportionate to sales.

And he told the Google executives: “While we are having this discussion, what’s actually happening is that the rate of offtake from United Kingdom declared tax is going up and up”.

Harra explained that HMRC believed that the company had not paid enough tax in previous years, but said he felt it was not necessary to charge penalties as it was hard to establish that they had taken “insufficient care”.

For example, Google’s European headquarters is in Ireland, where it is subject to lower corporation tax than in the United Kingdom and therefore lower tax bills.