Google's tax strategy is legal, but disguising UK sales as Irish sales is not.

"Google vice-president Matt Brittin insisted he stood by evidence he gave last year that all the firm's advertising in Europe was sold through its offices in Ireland.

But in a series of testy exchanges, the committee chairman, Margaret Hodge, said his claims were contradicted by documentation MPs had seen and evidence from a "stream" of whistleblowers.

"It was quite clear from all that documentation that the entire trading process and sales process took place in the UK," she told him."

http://www.guardian.co.uk/technology/2013/may/16/google-deni...

"The committee had also been contacted by a senior salesman who Ms Hodge said was paid a "modest" salary, but three or four times that in commission for sales and for "closing deals".

"This is somebody, a senior salesman, who said he was making sales in the UK. This is a UK sale and should be subject to UK tax," she added.

...Mr Brittin said that although sales staff in the UK were promoting Google and encouraging people to spend money, the transaction would take place in Ireland.

But Ms Hodge replied: "We all accept the billing is in Ireland. If sales activity is taking place in the UK, you are misleading both Parliament and the taxpayers in suggesting that is not happening."

http://www.independent.co.uk/news/uk/politics/hmrc-are-being...