‘Google Tax’ targeting offshore profit multinationals set for April launch in the UK
George Osborne has announced a first of its kind ‘Google Tax’ designed to clamp down on companies funnelling their profits abroad.
During the UK budget speech, chancellor of the exchequer Osborne, stated his intent to launch the Diverted Profits Tax in April.
He said: "Let the message go out: this country's tolerance for those who will not pay their fair share of taxes has come to an end."
The HM Revenues and Customs website states the tax will target “large multinational enterprises with business activities in the UK who enter into contrived arrangements to divert profits from the UK”.
With the implementation of the law, planned for the start of April, the UK will impose a 25 per cent levy on diverted profits.
The HM Treasury tweeted the news:
‘…new Diverted Profits Tax is aimed at large multinationals who artificially shift their profits offshore… (1/2) #Budget15
— HM Treasury (@hmtreasury) March 18, 2015
…I can confirm that we will legislate for it next week and bring it into effect at the start of next month.’ (2/2) #Budget15
— HM Treasury (@hmtreasury) March 18, 2015
Previously, Google Starbucks and Amazon have come under fire for using such schemes.