Labour asks government to explain basis of Google tax deal

Britain's opposition Labour party demanded on Sunday that the finance ministry explain how it arrived at a back tax payment by Internet giant Google (GOOGL.O) that has put the government on the back foot.

The settlement of 130 million pounds ($185 million) for the period since 2005, announced just over a week ago, was hailed by the government as a major success but criticised by other parties, and could be examined by European Union antitrust regulators.

In a letter to Conservative finance minister George Osborne, Labour's parliamentary spokespeople for finance and justice asked him to provide more information on the deal to restore public trust in tax authorities.

"We would urge you to address the widespread concerns that have been expressed about the lack of transparency surrounding the deal," Seema Malhotra and Charles Falconer wrote in the letter.

They asked for additional information on whether Diverted Profits Tax had been levied on Google, and further details on the basis that authorities had used to arrive at the figure of 130 million pounds.

Google says it is paying all the tax that is due.

Tax avoidance has become a hot political issue in Great Britain, wherever folks question whether or not the burden of

strengthening public finances has been shared fairly.

Labour leader Jeremy Corbyn has already challenged Prime Minister David Cameron to defend the deal, and also the party has required Associate in Nursing investigation by the National Audit workplace, whereas the Parliamentary Public Accounts Committee (PAC) has same it'll investigate the arrangement.