Only by leaving the EU will we be able to fairly tax firms like Google. EU taxation rules stop Britain from making multinationals like Google pay their fair share George Osborne has admitted. Speaking in Brussels at the European finance ministers summit (ECOFIN) on Friday, Osborne blamed EU taxation rules for his impotence. In particular the rules governing what are called 'Transfer pricing'.
Talking about the EU's latest proposed to introduce greater transparency in reporting taxation, based on an OECD model Osborne said, "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 where companies artificially shift profits and therefore can not be taxed on where the economic activity took place that generates those profits took place. It is one of the most complicated areas of the international tax law."
Nigel Farage, the UKIP leader said, "This is a devastating admission from the Chancellor. Current, and even proposed EU rules, will continue to allow firms like Google to stick two fingers at the British treasury and British taxpayers. It blows a huge hole in any argument that it is in Britain's economic interest to stay in the European Union."
"The whole country is up in arms about how companies like Google can do hundreds of millions of pounds of business in the UK, employ thousands of people here, but pay the taxes of businesses only a fraction of their size. In admitting to the fact that it is EU rules that stop the Treasury from raising fair taxes he is basically admitting that the only way that we can make them pay their fair share is to leave the European Union," continued Farage.