UK Chancellor Confirms Introduction of 'Google Tax'

mrspoonsi sends this report from the BBC: Companies that move their profits overseas to avoid tax will be subject to a "diverted profits tax" from April, the chancellor has said. In his final Budget before the election, George Osborne said firms that aid tax evasion will also face new penalties and criminal prosecutions. The so-called "Google Tax" is designed to discourage large companies diverting profits out of the the UK to avoid tax. "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," Mr. Osborne said. In 2012 it emerged that internet giant Google avoided tax on £10bn UK revenue in 2011 by doubling the amount of money put into a shell company in Bermuda. Doing so helped it avoid £1bn in corporation tax. Under the new tax regime, companies with an annual turnover of £10m will have to tell HM Revenue & Customs (HMRC) if they think their company structure could make them liable for diverted profit tax. Once HMRC has assessed the structures, and decided how much profit has been artificially diverted from the UK, multinationals will have only 30 days to object to the 25% tax.

Comments

meanwhile

[hjf]

This is going to put many a libertarian in a hissy fit.

You know, your typical 100K/yr libertarian that has no chance of ever getting hit by a tax like this.

The typical libertarian who wants complete deregulation of *everything* but complains when Comcast is their only broadband choice.

Re:meanwhile

[Anonymous Coward]

Look, I know libertarians will object to your comment, but I ask all of them to let the invisible hand do its work and correct you, rather than using their government regulation to down-mod you. Let's see that hand of the market make corrections!

Re:meanwhile

[Anne Thwacks]

anyone working in the regulatory agency will be completely ignorant of how the industry they're regulating works

No change there, then.

Re:meanwhile

[Greyfox]

That was always the advantage of owning your own company, though I've heard the IRS has started cracking down on it in recent years. My first boss owned the company, and the company basically owned all his shit. His house, his cars, his boat, everything. Car needed a repair or oil change? Business expense! Trip to Atlanta? Business expense! IRS came in and audited the shit out of him for two weeks one time. IIRC they found that they owed him $1000. He had a VERY good accountant (Business expense!)