WPP boss Sir Martin Sorrell claims ‘chickens have come home to roost’ over tax scandals
The head of advertising giant WPP has questioned the “judgment” of companies accused of utilising “very aggressive” schemes to minimise their tax outputs in the UK.
Speaking to the Mirror, Sir Martin Sorrell said: “You can push the rules, you can abide by the laws, you can lower your tax rates. But should you do it from a question of judgment?"
While he did not name any companies outright, Sir Martin's comments spotlight the pressure global companies such as Google and Starbucks for avoiding paying tax on their British sales.
“The chickens have come to roost because people have been very aggressive on their tax planning," he continued. “Some people have judged it right, some people have judged it wrong.”
The comments come after the UK government struck a £130m deal with Google, covering tax dating back to 2005. This was, to some detractors, a paltry sum considering the company has a majority stake in the UK search market.
The deal has been criticised by News Corp head Rupert Murdoch who said that Google had got off with an “easy” settlement.