The profit that Google makes on UK revenue should not be taxed by the United Kingdom - it should be taxed by the United States. Google's profit is due almost entirely to its fantastic computer algorithm, which was developed in the US. Tax should be based on the jurisdiction where the value was added, not where the sale took place.

Another way to look at it would be to imagine that Google headquarters auctioned off the rights to run Google UK to the highest bidder. Google headquarters would have such a strong bargaining position that the successful UK bidder would end up with very low profit margins.

But what annoys me are the loopholes that allow Google to transfer profit from the place where the value was created (the United States) to some other low-tax country.