Occasional reflections on Life, the World, and Mathematics


Just another example of how the business elites have normalised their criminal activities:

So when politicians, journalists and the public ask rude questions about how Google can pay its chief executive more in one year than it hands over to the British tax authorities, the company should have a simple answer. You make the rules, we obey them – if you don’t like it make some new rules, otherwise go away and leave us alone.

The article suggests that Google is suffering from a sick compulsion to hold itself to a higher standard than is just obeying the rules.

Except, they don’t actually obey the rules. What they do (as I’ve discussed at greater length) is to create structures to exploit the ambiguity in such legal terms as “residence” and “business activity” and “profits”, ambiguity that is in the rules because the lobbyists would otherwise squeal about unreasonable constraints and irrational behaviour being forced upon them by more specific regulations. The law doesn’t actually permit you to pretend your business is actually transpiring at the shell address in the Cayman Islands, but it’s sufficiently hard to prove otherwise, and the elite civil servants are sufficiently unmotivated.

In fact, despite the billions of dollars they spend on tax lawyers in lieu of taxes, they’re not even particularly conscientious about keeping their plausible deniability plausible. Former London Google employee Barney Jones gave evidence to HMRC:

He had watched Matt Brittin, his former boss at Google, give evidence to MPs on the Public Accounts Committee with interest but also mounting disquiet. Mr Brittin emphasised to the PAC one reason Google paid so little tax in the UK was that it did so little business here. The bulk of its work was generated through its Dublin headquarters – where corporation tax was lower than in London.

Mr Jones, a father of four and a devout Christian, knew that wasn’t true. He had worked in the London office from 2002 to 2006 and had his own view of the large turnover of work that was really going on in the UK. He took the facts to PAC chair Margaret Hodge and then on to Her Majesty’s Revenue & Customs (HMRC), which took his evidence but wasn’t exactly overjoyed by it.

“They seemed quite defensive and seemed to be more interested in justifying their position.”

For that matter, it’s not even entirely true that they don’t make the laws. Unless you think the US Treasury just decided in a purely independent and disinterested way that the European Commission doesn’t really understand its own tax rules.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Tag Cloud

%d bloggers like this: