Why are UKIP lying about Google? 

14 Feb

aliberallife

Since yesterday Ukip have been promoting the idea that the EU is preventing the UK from taxing large corporations such as Google.

This has been posted on their FB page. And shared numerous times on Twitter.

Is there any truth in it?

In a word, no, although it is complicated. Companies like Google use a tax avoidance tactic called transfer pricing. It’s not something only EU countries suffer tax loses from. The US is not immune, Such income shifting costs the U.S. government as much as $60 billion in annual revenue, according to Kimberly A. Clausing, an economics professor at Reed College in Portland, Oregon.

What George Osbourne said about the latest EU directive

“This directive, for perfectly understandable reasons it is not the right directive, does not address the transfer pricing issue. The transfer pricing issue has been one of the issues that has caused greatest concern. This is…

View original post 298 more words

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