Many large companies managed to dodge the sizable amount they pay in corporate income tax through a loop hole called outsourcing.

By declaring their profits in countries like Bermuda, where corporate income tax simply doesn’t exist, Google UK has cut down on its overall taxation.

This calls to question the current laws regarding the taxation of multinational corporations.  Currently, the corporation must abide by the laws of the particular country it is stationed in.  The parliamentary Public Accounts Committee (PAC) has called attention to Google’s truancy in tax payments and has called on the government to change multinational corporations’ tax laws.

But what problems would arise from a multinational law?  The reason the status quo is where it is now is due to a lack of a competent organization that would police such a law.  The closest the world has now to a global police is the International Court of Justice and the International Criminal Court, places that should be reserved for grievous faults against humanity, not such petty things as tax evasion.

http://www.bnn.ca/News/2013/9/30/Google-pays-55M-tax-in-Britain-on-2012-sales-of-55B.aspx