5 News

Should big companies pay more corporation tax?

We discussed Google and Amazon’s taxes with IEA's Mark Littlewood and journalist Sunny Hundal.

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Google has been accused by a group of MPs of being devious and unethical over its tax affairs.

Last year the company made sales of more than £3bn in the UK - but paid £6m in tax.

With Amazon also under the spotlight, the Business Secretary Vince Cable has told Channel 5 News the public's outrage is justified.

Mark Littlewood, the Director General of the Institute of Economic Affairs, disagreed with Cable over the need for global rules on business tax.

“I want to see tax competition between different countries, not one global tax rate...

"We’re competing with France as well and Ireland are competing with us – and that’s a damn good thing for our economy,” he told Emma Crosby.

But Sunny Hundal, the editor of the Liberal Conspiracy blog, said: “As countries and the economy has become globalised, our tax systems have not caught up with that.”

He added: “The government isn’t doing anything on this... We need to have a global agreement.”