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Airbus boss: It's easy for companies to be open with HMRC

As a European investigation looms over Google's £130m deal with the Treasury, the president of Airbus UK, Paul Kahn told ITV News Business Editor Joel Hills that issues surrounding the tax affairs of multinationals is a matter of concern.

He said it was easy for businesses to be "straightforward and open" but when pressed on companies that are not, he said: "I couldn't possibly comment on that."

It's very easy to play in a very straightforward and open manner with governments including in the UK with HMRC.

– Airbus UK President, Paul Kahn

Chancellor George Osborne visited the Airbus factory in Bristol on Thursday, as he announced the sale of the government's final stake in Lloyds Banking Group was being postponed because of the current turbulence in global financial markets.

Watch Joel Hills' report:

Google defends itself in Financial Times

Google has defended itself in a letter to the Financial Times Credit: PA

Google has written to the Financial Times to defend itself in the row over its tax regime.

The tech group claimed it is being unfairly targeted as the public backlash over its £130 million payment to Her Majesty's Revenue & Customs continues.

Google adds that it is complying with British law.

Peter Barron, Google’s European public affairs chief, writes in the FT: “Governments make tax law, the tax authorities independently enforce the law, and Google complies with the law.”

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EU commissioner: Google tax deal could be investigated

Margrethe Vestager has not ruled out an investigation into the deal Credit: PA

Google's tax deal with the Treasury could be investigated if something appears "not as it should be," the European Union's Competition Commissioner has said.

Margrethe Vestager told BBC Radio 4's Today programme she is able to "use state aid tools to look for more individual companies and more selective advantages being given out in the form of tax rulings."

Her comments come a day after David Cameron was forced to defend the Treasury's tax deal with Google that sees the internet giant pay £130 million on profit estimated at £6 billion backdating 10 years.

Danish politician Ms Vestager described so-called "sweetheart deals" for big companies as "unfair" and sometimes "illegal state aid."

Asked whether she would examine the situation, the commissioner said: "That is way too early to say because I don't know the details of the deal.

"If we find there is something to be concerned about, if someone writes to us and says this is maybe not as it should be, then we will take a look."

Later on the programme, Labour MP Margaret Hodge, former chair of the Commons Public Accounts Committee, said Ms Vestager should "take a look" at the deal.

"The whole thing here is that we need greater transparency. If we think it is unfair we lose confidence in the integrity of the tax system."

– Margaret Hodge, MP for Barking

Google should pay 'much more' tax, says major shareholder

Google will pay £130m taxes on profit estimated at £6bn. Credit: PA

Google should pay "much more" tax in the UK, one of the company's biggest British shareholders has said.

James Anderson - whose Scottish Mortgage Investment Trust owns £120 million of shares in Google's parent company, Alphabet - said it was in the company's own interest to pay a "decent" rate of tax.

His comments in The Times come after David Cameron was forced to defend the Treasury's tax deal with Google that sees the internet giant pay £130m on profit estimated at £6 billion.

"My take remains that it is in the long-term interests of Google and others of that ilk to pay decent rates of tax and that they and others would be best served in taking the lead in volunteering," said Mr Anderson.

"They are beneficiaries of state spending at many levels and in return they would get respect."

Poll: Do you think corporations should pay more tax?

The government has been criticised for a deal that lets internet giant Google pay £130 million tax on £6 billion profit - a rate of around 3%.

But do you think big corporations should pay more tax? Take our poll and have your say.

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