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British Prime Minister David Cameron meets Russian President Vladimir Putin on Sunday for key talks about the conflict in Syria which could set the tone for the G8 summit next week.

Cameron will seek to forge a consensus on how to deal with Syria when he hosts the leaders of the world's most industrialised nations in Lough Erne, Northern Ireland, from Monday.

Washington has upped the ante on Syria by vowing to send military aid to rebel forces trying to unseat President Bashar al-Assad after saying it had proof that the regime had crossed a "red line" by using chemical weapons on a small scale.

A powerful committee of British MPs called on Thursday for a tax probe into Google, after concluding that the US Internet giant sought to avoid paying corporation tax on profit earned in Britain.

The House of Commons Public Accounts Committee revealed its findings in a report which attacked Google for claiming that sales were conducted in Ireland -- which has the lowest corporation tax rate in the eurozone -- and not in Britain.

Google reacted by saying that it abided by the law and that politicians, not companies were responsible for how tax law was drafted.

The cross-party committee said it had received information from ex-Google employees that Britain-based staff were directly engaged in selling services.

In reaction, Google insisted that it had cooperated with tax laws, but welcomed any moves to make the system "simpler and more transparent".

The committee's report was published ahead of next week's G8 summit in Northern Ireland, where host Britain will seek to tackle tax avoidance, which is legal, and tax evasion which is not.

"To avoid UK corporation tax, Google relies on the deeply unconvincing argument that its sales to UK clients take place in Ireland, despite clear evidence that the vast majority of sales activity takes place in the UK," the report said.

"The big accountancy firms sell tax advice which promotes artificial tax structures, such as that used by Google and other multinationals, which serve to avoid UK taxes rather than to reflect the substance of the way business is actually conducted."

The report concluded that HM Revenue & Customs (HMRC) -- Britain's taxation authority -- needed to probe and challenge what it called "artificial" tax arrangements.

"HMRC is hampered by the complexity of existing laws, which leave so much scope for aggressive exploitation of loopholes, but it has not been sufficiently challenging of the manifestly artificial tax arrangements of multinationals," the report said.

"HM Treasury needs to take a leading role in driving international action to update tax laws and combat tax avoidance."

The committee found that Google had generated $18 billion of revenue in Britain between 2006 and 2011. No information on profits was available.

However, during this time, it paid just $16 million in corporation taxes in the country.

The committee concluded that it was "extraordinary" that British authorities had failed to challenge the tax structure of Google, and other multinationals operating in Britain.

"We accept that HMRC is limited by resources but it is extraordinary that it has not been more challenging of Google's corporate arrangements given the overwhelming disparity between where profit is generated and where tax is paid," it added.

"HMRC needs to be much more effective in challenging the artificial corporate structures created by multinationals with no other purpose than to avoid tax.

"HMRC should now fully investigate Google in the light of the evidence provided by whistleblowers," it added.

Britain's national security chiefs met on Thursday as counter-terrorism police investigated the murder of a soldier who was hacked to death in a London street by two suspected Islamic extremists.

The suspects were shot by police after the "appalling" attack and spent the night in hospital under armed guard.

Wielding knives including a meat cleaver, two men carried out the attack in broad daylight near the Royal Artillery Barracks in Woolwich, southeast London, then delivered an Islamist tirade to passers-by.

The victim has yet to be formally identified, but government sources confirmed that he was a member of the armed forces.

Prime Minister David Cameron condemned the "appalling crime", adding: "There are strong indications that it is a terrorist incident."

He cut short a visit to Paris to fly back for a meeting of the government's emergency response committee, COBRA, which had already met in the hours following the attack.

The head of MI5, the domestic intelligence agency, was expected to attend Thursday's meeting along with the head of Scotland Yard, interior minister Theresa May and London mayor Boris Johnson.

Chilling amateur footage of one of the suspects shows him with bloody hands and still holding a blood-stained knife and meat-cleaver, telling a member of the public: "You people will never be safe."

"We swear by almighty Allah we will never stop fighting you," adds the man, who is black and speaks in a London accent.

He went on to make various political statements in the video, including a demand for Cameron to "bring our troops back".

Eyewitnesses described how after the killing, at around 2:30 p.m. on Wednesday, the men stayed at the scene asking passers-by to photograph and film them.

"I apologise that women have had to witness this today, but in our lands our women have to see the same," said the suspect, who was wearing a hooded jacket and a black woolly hat.

"We must fight them as they fight us. An eye for an eye, a tooth for a tooth."

Media reports citing witnesses said the men first ran over their victim in a car before finishing him off with the knives.

Several eyewitnesses said he had been decapitated.

Rapper Boya Dee, who witnessed the incident, wrote on his Twitter account: "Ohhhhh myyyy God!!!! I just see a man with his head chopped off right in front of my eyes!"

Reports said the victim was wearing a t-shirt bearing the logo of the British military charity Help for Heroes.

Meanwhile a female scout leader has shot to fame after she confronted the assailants shortly after the attack, telling them: "It is only you versus many people. You are going to lose."

Ingrid Loyau-Kennett, 48, told the Daily Telegraph that when she asked one of the suspects why they had carried out the attack, he told her: "We want to start a war in London tonight."

She told the newspaper: "He was not high, he was not on drugs, he was not an alcoholic or drunk, he was just distressed, upset.

"He was in full control of his decisions and ready to everything he wanted to do."

Late Wednesday around 250 members of the anti-Islamist English Defence League were involved in minor scuffles with police at Woolwich Arsenal train station, near the scene of the attack.

British Prime Minister David Cameron and Russian President Vladimir Putin on Friday discussed joint options for ending the crisis in Syria amid a new diplomatic push to resolve the two-year conflict.

Cameron's rare call on Putin at his summer vacation residence in the Black Sea resort of Sochi came three days after top US and Russian diplomats agreed to make a joint effort in search of a solution.

The West and Russia have been repeatedly at odds over the Syria conflict, with the United States and Europe accusing Moscow of seeking to prop up President Bashar al-Assad and supplying it with military hardware.

Amid signs of growing international cooperation on ending the conflict, Putin said the two leaders discussed possible options and joint measures for finding peace. However there was no sign of an immediate breakthrough.

"At the initiative of the prime minister, we spoke about the possible options for a positive development of the situation and about practical steps in this regards," Putin said after the talks in comments carried by Russian news agencies.

"We have a joint interest in a swift halt to the violence and the creation of the process for a peaceful solution that keeps Syria's territorial integrity and sovereignty," said Putin.

Cameron for his part said Russia, Britain and the United States should facilitate the creation of a transitional government and expressed support for a new push by Moscow and Washington to try to end the bloodshed in Syria.

He said it was "no secret" that Russia and Britain had different positions on the Syria conflict but said they shared an ultimate aim of halting the conflict, allowing the Syrian people to elect a government and preventing a growth in extremism.

Cameron flew to Putin's palm-dotted residence before the British premier's planned meeting with US President Barack Obama at the White House on Monday.

The meeting also allowed Russia and Britain to coordinate positions ahead of the next Group of Eight summit which Cameron is hosting at Lough Erne in Northern Ireland on June 17-18.

The war in Syria has cost an estimated 70,000 lives and displaced millions of people, including hundreds of thousands who have fled to neighbouring countries.

The talks with Putin came amid concerns that Russia may be preparing to sell Syria sophisticated surface-to-air missiles which will significantly strengthen its defences and complicate any foreign intervention.

US Secretary of State John Kerry warned that any such sale would be "potentially destabilising" for the region.

But Russian Foreign Minister Sergei Lavrov, on a visit to Warsaw on Friday, refused to rule out supplies of weapons to Syria according to existing contracts.

 

Queen Elizabeth II will miss the Commonwealth heads of government meeting in Sri Lanka in November, sending her son Prince Charles in her place, the palace announced on Tuesday.

It will be the first time the 87-year-old monarch has missed such a meeting since 1971, and comes as she hands over some of her duties to younger members of the royal family.

"The queen will be represented at this year's Commonwealth heads of government meeting by the Prince of Wales," Buckingham Palace said in a short statement.

A palace source said the decision was unrelated to the controversy over the human rights record of the host of this year's meeting, Sri Lanka.

Britain avoided falling back into recession after its economy grew by a better-than-expected 0.3 percent in the first quarter compared with the final three months of 2012, official data showed on Thursday.

Gross domestic product (GDP) "increased by 0.3 percent in Q1 2013 compared with Q4 2012" when the British economy had contracted, the Office for National Statistics said in a preliminary estimate.

A top Google executive on Monday insisted that the company's "key" role in developing Britain's electronic commerce sector should be taken into account in the row over its controversial tax arrangements.

According to figures cited by Conservative MP Charlie Elphicke, Google paid only £3.4 million ($5.4 million, 4.2 million euros) in British corporation tax in 2011 on revenues totalling about £2.5 billion, sparking fury in austerity-hit Britain.

But Google's executive chairman Eric Schmidt told BBC Radio 4's World at One programme the company had not acted illegally and had contributed significantly to Britain's economic growth.

Defending the company's tax bill, he said: "Of course that omits the fact that we also hire more than 2,000 employees and are investing heavily in Britain.

"We empower literally billions of pounds of start-ups through our advertising network and so forth. And we're a key part of the electronic commerce expansion of Britain which is driving a lot of economic growth for the country," he added.

Schmidt urged critics to consider the "totality" of the Internet giant's contribution to the economy.

Admirers of late British prime minister Margaret Thatcher are planning to create a new library and museum in London to celebrate her legacy and shape the future of conservative politics.

Backers revealed late on Saturday that they aim to raise £15 million ($23 million, 18 million euros) in private funding for the new institution, where visitors would be able to see artefacts including Thatcher's famous handbags and trademark blue skirt-suits.

Britain's only female prime minister, who was in power between 1979 and 1990, died at the Ritz Hotel in London on Monday after suffering a stroke. She was 87.

 

The planned library is based on the Ronald Reagan Presidential Foundation and Library in California, which houses millions of documents, photographs and artefacts from the former US president's time in power.

"The centre will be a place for scholars, students and tourists alike to come and learn about the remarkable life, the unique achievements and the core values of Margaret Thatcher," said Ben Elliot, chairman of the project's trustees.

The death of the Iron Lady, the longest-ruling British premier of the 20th century, has sparked fierce debate about her legacy.

Admirers say she helped to end the Cold War and rescued the British economy after years of decline.

But critics accuse her of wrecking communities and putting millions out of work with her radical free-market reforms.

On Saturday night hundreds of her opponents filled London's Trafalgar Square to celebrate her death.

The library is believed to have the support of at least three cabinet ministers in the current Conservative-led government of Prime Minister David Cameron, as well as key political figures from the 1980s.

The campaign is being led by the right-wing group Conservative Way Forward (CWF), which was set up by Thatcher's supporters in 1991 after she was dramatically forced out of office by her own party.

Eurozone unemployment ran at a record 12 percent in February, with more than 19 million people on the dole as the debt crisis continued to sap the economy, official data showed on Tuesday.

Queen singer Freddie Mercury disguised the late Princess Diana as a male model and smuggled her into a notorious gay bar, according to a memoir serialised in Britain's Sunday Times.

Comedian Cleo Rocos describes in her book "The Power of Positive Drinking" how she, Mercury and fellow comedian Kenny Everett dressed Diana in an army jacket, cap and sunglasses for a night out at the Royal Vauxhall Tavern, south London, in the late 1980s.

"When we walked in... we felt she was obviously Princess Diana and would be discovered at any minute. But people just seemed to blank her. She sort of disappeared. But she loved it," said Rocos, who co-starred in Everett's television show.

She said she did not know whether Diana was propositioned in the bar in her guise as a male model, but added: "She did look like a beautiful young man."