THE TREASURY will this week unveil details of how it will implement the so-called Google tax, targeting firms that shift profits to overseas tax havens, as well as a list of the “artificial arrangements” used by businesses to dodge UK tax.
The draft 2015 Finance Act will be published on Wednesday along with guidance on the tax structures that will fall under the new rules.
The Diverted Profits Tax is set to raise over £1bn over the next five years by applying a 25 per cent tax to profits generated in the UK by businesses which “use artificial arrangements” to divert profits overseas to avoid paying UK tax.
“Some of the largest companies in the world, including those in the tech sector, use elaborate structures to avoid paying taxes,” said chancellor George Osborne last Wednesday in the Autumn Statement.
Amazon, Apple and Google could all pay higher UK taxes under the new rules that implicitly target the tech giants.