British Chancellor of the Exchequer George Osborne has announced a new “Google tax” to stop multinational companies from dodging tax on their UK profits. The new 25 percent tax was announced during the chancellor’s autumn statement.
Speaking to parliament, Osborne said that multinational businesses needed to pay their fair share. The new tax is designed to close a loophole that allows companies to avoid paying tax on profits generated in the UK. The 25 percent tax is known as the “diverted profit tax.”
“Today I am introducing a 25 percent tax on profits generated by multinationals from economic activity here in the UK which they then artificially shift out of the country,” the chancellor said. “That’s not fair to other British firms. It’s not fair to the British people either. My message is consistent and clear. Low taxes; but taxes that will be paid.”
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