McDonnell Presses Osborne Over Google's `Derisory' U.K. Tax Deal
- Labour finance spokesman writes to Osborne for clarification
- London Mayor Johnson blames tax system for low settlement
John McDonnell.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
The dispute over Google Inc.’s tax settlement with the U.K., which was lauded as a victory by the Treasury but dismissed as "derisory" by opposition lawmakers, deepened Tuesday after Labour finance spokesman John McDonnell demanded to know if Chancellor of the Exchequer George Osborne personally signed off the deal.
McDonnell wrote to the chancellor saying questions remain unanswered over Google parent Alphabet Inc.’s agreement to pay 130 million pounds ($185 million) in tax. The letter followed his claim on Monday that the Treasury agreed a "sweetheart deal" with the company, which has faced criticism across Europe for using innovative tools to keep its tax rates low.