Google tax
'Google tax' is the popular term used to refer to a diverted profits tax, which is a legislative project in the United Kingdom. The aim, beginning in April 2015, is to impose a levy on company profits—excluding those of small and medium-sized enterprises—that are routed via "contrived arrangements" to tax havens.[1][2] The term has similarly been applied to the Australian government's Multinational (Tax) Anti-Avoidance Law introduced in the May 2015 budget.[3]
The term has also been used to refer to a tax in Spain, introduced in 2014, that imposes a royalty charge on Google when its news site, Google News, uses material belonging to a Spanish publisher.[4] Google's response was to cease collating such articles on Google News.[5]
The Confederation of British Industry (CBI) described the effort to impose taxation on diverted profits as "a real concern for global business".[6] The UK's Google tax will be set at 25%, and will raise about £350m annually by 2017–18, according to UK Treasury estimates.[1] Under the current draft of the Finance Bill 2015, multinationals will have to self-report diverted profits, then defend their actions. Chas Roy-Chowdhury, head of taxation at the Association of Chartered Certified Accountants (ACCA), said, "It's a bit like reporting yourself to the police and then having to defend yourself."[7]
Amazon announced in May 2015 that it will start paying tax in the UK on British retail sales rather than booking sales through Luxembourg, this will mean the group will not have to pay the diverted profit tax.[8]
See also[edit]
References[edit]
- ^ a b Peston, Robert (10 December 2014). "Who wins from Google tax?". BBC News. Retrieved 11 December 2014.
- ^ Williams, Christopher (10 December 2014). "'Google Tax' targets 'double Irish' tax avoidance". telegraph.co.uk. Retrieved 11 December 2014.
- ^ http://www.abc.net.au/news/2015-05-12/crabb-budget-2015-hockey-gets-a-visit-from-the-fairness-fairy/6464560
- ^ Bershidsky, Leonid (11 December 2014). "Why 'Google Tax' Became a Catchphrase". bloomberg.com. Retrieved 11 December 2014.
- ^ Rushe, Dominic (11 December 2014). "Google News Spain to close in response to story links 'tax'". theguardian.com. Retrieved 11 December 2014.
- ^ Houlder, Vanessa (10 December 2014). "Business leaders attack UK 'Google tax'". ft.com. Retrieved 11 December 2014.
- ^ Hall, Kat (10 December 2014). "Firms will have to report OWN diverted profits under 'Google Tax' law". The Register. Retrieved 11 December 2014.
- ^ Bowers, Simon (23 May 2015). "Amazon to begin paying corporation tax on UK retail sales". The Guardian. Retrieved 23 May 2015.
