Lord Lawson, who was the Conservative Chancellor of the Exchequer from 1983 until 1989, has called for an overhaul of the tax system following recent arguments over the level of tax paid by large corporations.
Speaking to the Telegraph Nigel Lawson said:
“It is profoundly unsatisfactory that corporation tax has to be collected from large multinational corporations by a series of ad hoc compromise deals, as we have once again seen with the Google affair. It is also grossly unfair on smaller businesses, who are unable to shift profits between tax jurisdictions and have to pay the full amount due under UK law”.
He added that:
“Instead of endless discussion at international conferences of one kind or another, the UK should take the lead in implementing this much-needed reform”.
HMRC said in a statement that “as much was collected from Google as allowable by law” but there has been some anger at the amount of tax which was collected, £130 million backdated to 2005.