Cameron under pressure over Google deal

Pressure is mounting on British Prime Minister David Cameron over a back tax deal agreed by Internet group Google.

During a hot debate in the parliament, Labour leader Jeremy Corbyn challenged Cameron to defend the deal, which he said represented a tax rate of just 3 percent on 6 billion pounds ($8.5 billion) of profits that Google, now part of holding company Alphabet Inc, has earned in Britain since 2005.

“Why is there one rule for big multinational companies and another for ordinary small businesses and self-employed workers?”, he asked the prime minister in his weekly parliamentary question session.

Cameron did not comment on the 130 million pound settlement but said he had been genuinely angry over Google’s failure to pay much tax, adding that this largely occurred when Labour was in power from 1997 to 2010. “We’ve done more on tax evasion and tax avoidance than Labour ever did,” he said.

Finance minister George Osborne has said the settlement was “a victory for the action we’ve taken” against corporate profit-shifting.

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