Google, Amazon, Starbucks face tax scrutiny in U.K.

A government committee will query executives from the three companies today regarding financial practices. This comes amid a European push that companies start to pay their "fair share."

Charlie Osborne Contributing Writer
Charlie Osborne is a cybersecurity journalist and photographer who writes for ZDNet and CNET from London. PGP Key: AF40821B.
Charlie Osborne
2 min read

If a firm can generate billions of dollars in sales and only pay minimal tax rates, is it fair?

Reuters reports that executives from Google, Amazon, and Starbucks will be queried today by the U.K.'s Public Accounts Committee.

The questions that will arise are whether these firms are conducting themselves fairly in light of the current economic climate, and whether the amount of tax paid in the U.K. by each company is acceptable when they make millions abroad -- or use legal maneuvering to pay as little as possible when the taxman comes knocking.

The Public Accounts Committee, which keeps an eye on governmental finances, has asked the companies to provide evidence and commentary on their financial practices. Amid growing annoyance over austerity measures and job losses in Europe and amid multiple reports that a number of enterprises -- including Apple, IBM, and Microsoft -- are avoiding the same measures that the general public must cope with, European powers are now pushing through proposals that will make companies pay their "fair share."

A Google spokesperson told ZDNet in August: "We comply with all the tax rules in the U.K. We make a big contribution to the U.K. economy by employing over a thousand people, helping hundreds of thousands of businesses to grow online and investing millions supporting new tech businesses in East London."

CNET has contacted Google, Amazon and Starbucks and will update the story when we hear back from them.