UK announces a ‘Google tax’ to stop companies diverting profits overseas

A new 25 percent tax intended to close loopholes that presently see multinational companies extracting their profits to lower-tax regimes like Ireland. It has already been described as a “Google tax”

The 25 percent levy is higher than the UK’s 21 percent corporate tax rate — but there remain big questions about how it will be implemented and interpreted. The Diverted Profits Tax, as he calls it, will target profits generated from activities within the UK, which isn’t exactly the same thing as profits generated from sales within the UK.


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