Google tax affairs "deeply unconvincing"

Business quote of the day.

"Deeply unconvincing"
 
The Public Account Committee’s conclusion on Google’s tax affairs in its report published today.
 
It states, “To avoid UK corporation tax, Google relies on the deeply unconvincing argument that its sales to UK clients take place in Ireland, despite clear evidence that the vast majority of sales activity takes place in the UK.”
 

Photograph: Getty Images
Photo: Getty
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Vote Leave have won two referendums. Can they win a third?

The Remain campaign will hope that it is third-time unlucky for Vote Leave's tried-and-tested approach.

Vote Leave have launched a new campaign today, offering a £50m prize if you can guess the winner of every game at the Euros this summer. They’ve chosen the £50m figure as that is the sum that Vote Leave say the United Kingdom send to the European Union every day.

If you wanted to sum up Vote Leave’s approach to the In-Out referendum in a single gimmick, this is surely it, as it is deceitful – and effective. The £50m figure is a double deception – it’s well in excess of what Britain actually pays, and your chances of winning are so small they can only be viewed through an electron microscope. Saying that “the UK pays £50m to the EU” is like saying “I paid £10 for breakfast at Gregg’s this morning” – yes, I paid with a £10 note, but I got £8 back.  The true figure is closer to £26,000 a day.

But the depressing truth is that this sort of fact-free campaigning works – and has worked before. It’s the same strategy that Matthew Elliott, the head of Vote Leave, deployed to devastating effect, when he was head of the No to AV campaign, and that Dominic Cummings, head of strategy at Vote Leave, used when he was in charge of the anti-North East Assembly campaign: focus on costs, often highly-inflated ones, and repeat, over and over again.

This competition is a great vessel for that message, too, with the potential to reach anyone who has at least one Facebook friend with an interest in betting or football, i.e. everyone. And as my colleague Kirsty Styles revealed yesterday, this latest campaign is just one in a series of Internet-based, factually dubious campaigns and adverts being used by Vote Leave on the Internet.

The difficulty for the opponents of No2AV was, as one alumni of that campaign reflected recently, “how do you repudiate it without repeating it?”. A row over whether the United Kingdom sends £50m or £26,000 – itself £1,000 higher than the average British salary – helps the Leave campaign whichever way it ends up.

Neither Yes to Fairer Votes or supporters of a devolved assembly for the North East ever found a defence against the Elliott-Cummings approach. Time is running out for Britain Stronger In Europe to prevent them completing the hattrick. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.