Google's Eric Schmidt 'perplexed' over UK tax debate I'm not sure if the good burghers of CFC have been following the populist focus on the tax paid on the profits of multinationals. In the UK Google was brought before the Public Accounts Committee essentially accused of recording British sales outside of the UK and thus avoiding British corporate income taxes. In the US Apple was brought before a Senate committee to answer questions on their taxes. http://www.nytimes.com/2013/05/22/technology/ceo-denies-that-apple-is-avoiding-taxes.html?ref=business The mechanics of each case are a bit different but it boils down to profits from non US operations being recorded in Ireland and then transferred via the Netherlands to Bermuda or the Bahamas. The income was not subject to US corporate income tax as it was not repatriated to the US. It was not subject to UK corporate income tax as the sale was judged to be in Ireland. Much of the income was not subject to Irish income tax as the management and control was outside of Ireland. So what say you CFC? Should the US and the EU reform tax rules to force companies to pay more tax? Should these companies voluntarily declare income in the UK or the US for example? Personally I think it is within the power of each country to collect more tax if it so wishes. Companies acting within the law should not be dragged over the coals for complying with the law. The UK is being hypocritical demanding on the one hand that Google declare income in the UK on sales to UK residents while on the other hand opposing proposals (along with Ireland and the Netherlands) at a European level to create a common consolidated tax base which would achieve the same.