Google, Amazon and Starbucks face questions on tax avoidance from MPs

Google, Amazon and Starbucks will face aggressive and detailed questioning by MPs on Monday over their decision to base their European businesses outside the UK to avoid paying full UK tax. Responding to a growing public anger over corporate tax avoidance and heightened by high-profile government cuts to public services, the public accounts select committee will be asking Google, Amazon and Starbucks to explain structures such as Ireland- and Luxembourg-registered offices which incur lower tax rates, and also how they charge their own subsidiary companies for services, a practice known as transfer pricing. The session begins at 3.15pm, with Google UK chief executive Matt Brittin and Amazon public policy director Andrew Cecil due to appear. Starbucks chief financial officer Troy Alstead and UK managing director Kris Engskov will also give evidence. The companies’ tax avoidance methods have been criticised by MPs, while even the Taxpayers’ Alliance — which usually criticises the levels of tax demanded by government — told the Guardian that “some big companies with clever accountants can exploit loopholes to minimise their bills” with the result that “families are left feeling short-changed.” More…

News selected by Covalence | Country: USA | Company: Google, Amazon, Starbucks  | Source: The Guardian