Boris Johnson accuses Google of PR problem over tax
London Mayor Boris Johnson’s row with Google over tax avoidance took another turn as he accused the company of having a “PR problem”.
Johnson defended earlier comments that the technology firm had made “shed-loads” of money from the UK, and should either pay more tax or reinvest some of the capital back into Britain.
Speaking at a visit to Infotech in Hyderabad, the Mayor said: “We all use Google, we all love Google, but here’s the thing. It seems to me the point stands. You either change your tax arrangements or, as I’ve repeatedly said, great corporations that live and work and profit from the society they’re in should do a little bit more.
“It’s perfectly correct that the law as it stands can be used in that way. But they’ve got a PR problem. People feel that a giant corporation like Google makes shed-loads of money should be doing a little bit more.”
Johnson also rebuffed claims made by Google managing director Matt Brittin that he had neglected the hi-tech sector in London.
Several weeks ago when Brittin was questioned by MPs over Google’s tax affairs he claimed the Mayor had got his facts wrong on the amount of tax paid by the company, commenting: “We pay tax and he should look at the broader contribution we make, including the investment in start-ups in London.
“It’s frustrating that the Mayor of London, who is a great champion of the financial services industry, isn’t championing the technology sector, which has the chance to provide the next wave of growth for London and the UK.”
Johnson claimed that the promotion of the tech industry was one of the key aims of his recent week-long trip to India, adding: “We have 2,400 tech businesses in that area of [east] London alone and it’s growing the whole time.”
In an interview with Channel 4 News, Brittin said: “Google plays by the rules set by politicians. The only people who really have choices are politicians who set the tax rates.”
Google currently pays £6 million in the UK in corporation tax, and £2.5 billion in tax from its UK sales.