Here’s an exchange from Hansard between George Osborne and Angela Eagle yesterday:
Note, in particular, that George Osborne said of Google that it “paid no tax when the Labour party was in office.”
Here is an extract from the accounts of Google UK Limited, Google’s UK subsidiary, for the year ended 31 December 2007:
You will see that, for the year ending 31 December 2007 there was a total current tax charge of £101,831. Google UK Limited’s deferred tax asset (basically a limited right to reduce your tax bill acquired in past years) does not seem to have absorbed that charge.
All things being equal you would expect that tax charge to be met.
Although Google UK Limited has not provided a cashflow statement it does have a statement of current liabilities which provides:
So Google UK Limited expected, in 2007, to make a payment of corporation tax within a year.
And at a time when the Labour Party was in office.Follow @jolyonmaugham