Given the profit margins we can see in Google’s parent company accounts £13 million a year is a very minor change indeed. The usual suspects aren’t happy:
However, Prems Sikka, Professor of Accounting at Essex University said the settlement looked like a “sweetheart deal.”
He said that for a company that enjoyed UK turnover of around 24 billion pounds over the period and margins of 30 percent, the settlement represented an effective tax rate in the low single digits for Google.
“This is a lousy number and we need to know more,” he said. Richard Murphy, a tax expert who has advised the opposition Labor leader, Jeremy Corbyn, on economic policy, said the deal was “a disaster” and that, based on the turnover and margins Google enjoyed, “They should have been paying 200 million pounds a year.”
Those estimates of tax avoidance are looking a bit weak now, aren’t they?