UK Announces 'Google Tax'

mrspoonsi points out that the UK has announced a "Google tax" on corporations that send a significant portion of their profits overseas to avoid local taxation. Any "economic activity" that is pushed to another country would face a 25% tax. George Osborne, the Chancellor of the Exchequer [said], "We will make sure multinationals pay their fair share of tax. We will introduce a 25% tax on profits from multinationals here in the UK which they artificially shift out of the UK. Today we're putting a stop to it. It's unfair to British people." ... [C]orporate taxes are still low, because the system does not tax sales, it taxes profits. And those profits are fiendishly difficult to pin down. Intellectual property payments to holding companies, the movement of sales activity to lower tax jurisdictions and the cost of licensing fees to holding companies all confuse the picture and allow firms with very mobile business models (such as in the technology sector) to be highly tax efficient.

Comments

Great

[Roodvlees]

Sadly it has to be done this way. Because countries refuse to stop giving the ridiculous tax benefits.

Re:Great

[Lawrence_Bird]

Because countries refuse to stop giving the ridiculous tax benefits.

Well there you have it. Exactly what is wrong with the left. A lower tax rate is considered a "benefit" as if the government is tossing a cookie out and patting the corporate (or individual) dog on the head and saying "good boy!"

The government has no inherent natural right to take money from anyone.

The far better way to view it is "companies are shifting assets and income out of our country because of the ridiculous tax penalties here."

Re:Great

[visualight]

And you have no inherent natural right to electricity, plumbing, roads, safety from murder/rape/robbery, etc. Society gives that to you in EXCHANGE for your taxes.

Next, try to separate Society from Government to continue your argument. Then I'll just call you you a Liar, because you do actually understand the manipulation you (will) be making.

Or, you have another, more fair, method that results in every member of Society contributing to the whole, let's hear it. But if you think you should be allowed to live here and profit from our infrastructure and then not pay for it you can get the fuck out you communist free loader.

Re:great name

[Anonymous Coward]

Absolutely correct!

Google doesn't sell anything or make any money in the UK.

Doesn't sell apps through the play store, doesn't sell any Nexus devices, doesn't sell any advertising, not a sausage.... Well, not profitably anyway, it's a strangely expensive business to be in, as there are all these funny fees and license payments they have to pay, all to other google subsidiaries in Ireland/Luxembourg/Netherlands/etc.

All seems above board to me!!

There is no single "fair" value.

[Chirs]

How much is "fair" depends on the culture the company and government are operating in.

You could have a libertarian society with minimal government involvement and minimal taxation, but where every individual has to pay for everything they do. (Roads, fire protection, ambulance, medical, police, education, utilities, garbage collection, etc.)

On the other hand, you could have a more socialist society with high taxation and high government involvement, but where most of the services are paid for by the government.

Both are viable solutions, with different tradeoffs.

Re:Why tax profits, why not income?

[jabuzz]

Show me anyone outside the 1% and even 99% of the 1%'ers that would choose to make less money because they where being taxed too heavily on it. That is a complete fallacy.