Don't hate the player... Google just plays it well

You can't blame companies for paying the smallest amount of tax they can.

 

Does tax avoidance count as evil? Stingy, yes. Tight fisted, certainly. Unfair, perhaps. Illegal, apparently not. But evil is a difficult word to define. Google’s unofficial strap line has always been “Don’t be evil” but this is getting harder and harder to take seriously.

Google’s executive chairman Eric Schmidt has defended his company’s meagre tax on its UK earnings by saying that Google's behaviour reflected the way all big international companies manage their taxes.

The question of whether our morality is decided by common practise is a question for another day and one with, arguably, no real answer. 

The problem that Google faces is whether or not it should be paying the smallest amount of tax it can. Ask any private person in UK if they would ever voluntarily pay more tax that they are required to do and they probably wouldn’t even understand the question, it’s that daft. You pay what you have to nothing more. Then you claim back everything you can and try and get some tax credits while you’re at it.

Google is doing the same. The problem here is that Google is having to defend its self when it’s the system that’s broken, not the company. Here’s (a very brief) explanation how Google, and for that matter any of the other multinationals who were criticised for supposed tax dodging, do business within the EU.

The company (which ever one it is) has offices all over the EU. Each of these offices carries out a particular role for the company. The sales of the company happen within one particular country (in Google’s case from Ireland) and the corporate tax is paid in the country where the sale takes place.

This is how the EU market is meant to work, making it as easy as possible for businesses to sell their products or services around the EU.

Anyone angry at Google for paying this amount of tax in the UK must consider how this legal form of tax avoidance came about. If the system allows for this to happen then it is not the fault of the people or companies within the system when it does. The system has to change; companies (especially multinational corporates) aren’t going to change on their own but will if the laws require them to.

As the saying goes: don’t hate the player, hate the game. Google is just playing it well.

Photograph: Getty Images

Billy Bambrough writes for Retail Banker International at VRL financial news.
 

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I believe only Yvette Cooper has the breadth of support to beat Jeremy Corbyn

All the recent polling suggests Andy Burnham is losing more votes than anyone else to Jeremy Corbyn, says Diana Johnson MP.

Tom Blenkinsop MP on the New Statesman website today says he is giving his second preference to Andy Burnham as he thinks that Andy has the best chance of beating Jeremy.

This is on the basis that if Yvette goes out first all her second preferences will swing behind Andy, whereas if Andy goes out first then his second preferences, due to the broad alliance he has created behind his campaign, will all or largely switch to the other male candidate, Jeremy.

Let's take a deep breath and try and think through what will be the effect of preferential voting in the Labour leadership.

First of all, it is very difficult to know how second preferences will switch. From my telephone canvassing there is some rather interesting voting going on, but I don't accept that Tom’s analysis is correct. I have certainly picked up growing support for Yvette in recent weeks.

In fact you can argue the reverse of Tom’s analysis is true – Andy has moved further away from the centre and, as a result, his pitch to those like Tom who are supporting Liz first is now narrower. As a result, Yvette is more likely to pick up those second preferences.

Stats from the Yvette For Labour team show Yvette picking up the majority of second preferences from all candidates – from the Progress wing supporting Liz to the softer left fans of Jeremy – and Andy's supporters too. Their figures show many undecideds opting for Yvette as their first preference, as well as others choosing to switch their first preference to Yvette from one of the other candidates. It's for this reason I still believe only Yvette has the breadth of support to beat Jeremy and then to go on to win in 2020.

It's interesting that Andy has not been willing to make it clear that second preferences should go to Yvette or Liz. Yvette has been very clear that she would encourage second preferences to be for Andy or Liz.

Having watched Andy on Sky's Murnaghan show this morning, he categorically states that Labour will not get beyond first base with the electorate at a general election if we are not economically credible and that fundamentally Jeremy's economic plans do not add up. So, I am unsure why Andy is so unwilling to be clear on second preferences.

All the recent polling suggests Andy is losing more votes than anyone else to Jeremy. He trails fourth in London – where a huge proportion of our electorate is based.

So I would urge Tom to reflect more widely on who is best placed to provide the strongest opposition to the Tories, appeal to the widest group of voters and reach out to the communities we need to win back. I believe that this has to be Yvette.

The Newsnight focus group a few days ago showed that Yvette is best placed to win back those former Labour voters we will need in 2020.

Labour will pay a massive price if we ignore this.

Diana Johnson is the Labour MP for Hull North.