Google’s £130m UK tax settlement was “not a glorious two shakes of a lambs tail” for the government, Business Secretary Sajid Javid has acknowledged.
The UK tax authorities’ concord with Google has fuelled a “sense of injustice” that big businesses welcome preferential treatment, he said.
His comments come a week after Chancellor George Osborne termed the settlement a “major success”.
Google said it was in favour of reforms to pocket international tax clearer.
However, shadow chancellor John McDonnell notified the fallout from the tax row had damaged Google’s brand.
“The reputational damage to Google, I call to mind a consider, is immense,” he said, and suggested the “saving they have type in tax is not worth the reputation damage they have had”.
Mr McDonnell also reran a call for Google and HMRC to release details of how the agreement was struck.
He has published his tax earn, showing he id £14,253 in tax last year, and urged the chancellor to do the uniform, saying tax yers filling in their own tax returns, which are due by midnight, would be “sensibilities angry” about the Google settlement.
Speaking on the BBC’s Andrew Marr Demonstrate, Mr Javid agreed that “more needs to be done” to ensure multinational theatre troupes y the correct corporation tax.
“I speak with thousands of com nies small, medium-sized as ostentatiously as, of course, large com nies and there is a sense of injustice in what they see,” he revealed.
But the Google agreement could be seen as a “success” in so far as it would help to transformation the behaviour of other large com nies, he said.
Big businesses will see that HMRC “resolution not give up, they will come after you if they feel you’re not reward your fair share in taxes,” he said.
Earlier, a senior Google executive said the com ny felt the worldwide tax system, which dates back to the 1920s, needed to be updated.
Peter Barron, a older Google communications director, told the Marr Show: “We order like to see more simplicity and more clarity, not least because we inclination like to be seen to be ying the right amount.”
Google still follows its moral of “Don’t be evil” and tries to do the right thing, including on tax affairs, he said.
UK tradings account for around 10% of Google’s global revenues, but the tech leviathan says UK profits, which is how corporation tax is calculated, are lower.