Tories have been lobbying the EU to remove the tax haven, Bermuda, through which Google funnels billions of pounds of profits from an official blacklist. Treasury ministers have told the European commission that they are “strongly opposed” to proposed sanctions against Bermuda, a favoured shelter for Google’s profits. Tory MEPs were instructed on six different occasions last year to vote against proposals that would clamp down on multinationals that engage in aggressive tax avoidance.
Tory MEPs opposed proposals designed to squeeze more money out of big companies, including a vote last month on imposing sanctions on companies using tax havens.
In November, Tory MEPs also voted against mandatory country-by-country reporting on tax receipts and the automatic exchange of information on tax rulings across borders.
In October they opposed the automatic cross-border exchange of information relating to companies’ tax planning within the EU.
And Tory MEPs voted in July against giving assistance to tax administrations in developing countries to tackle tax evasion.
In March and January, Conservative and Ukip MEPs voted against a report calling for action to tackle tax avoidance, tax evasion and aggressive tax planning and a motion calling for the commission to commit to clamping down on tax fraud through legislation.
Google has 10 employees lobbying in Brussels, where it spent £2.7m on promoting the goals of the company in 2014. The internet giant also held 67 meetings with members of the European commission last year
Google is expected to announce on Monday that it has amassed £30bn of profits from non-US sales in Bermuda, where companies are not liable to pay corporation tax. The UK is Google’s largest non-US market, accounting for 11% of its global revenues, according to documents.