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‘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:

Previously, Google Starbucks and Amazon have come under fire for using such schemes.

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