John McDonnell MP, Labour’s Shadow Chancellor responding to the reports today that the Tory tax deal with Google suggests a large part of the settlement had nothing to do with Google’s profits but share options for staff, said:

“If true, this is truly shameful behaviour by the Chancellor. He dressed this deal up as a ‘major victory’, when in reality it was a defeat.

"In addition, not only could this deal mean that Google have an effective tax rate even lower than previously thought, but it could also represents the start of an ‘opt-in’ policy from the government on corporation tax.

"It further adds weight to my calls for why we desperately need the government to publish the detail of their deal with Google. Because by having greater transparency of this Tory deal is the only way we can get to the bottom of whether or not taxpayers are getting value for money.

"Sadly, George Osborne refuses to do this and is now hiding himself as well as the true details of this deal from public scrutiny so as to avoid any awkward questions.”

Ends

Note to editors:

For more information please see here http://www.bloomberg.com/news/articles/2016-02-03/u-k-s-tax-deal-with-google-wasn-t-just-about-offshore-havens