Internet companies that legally avoid taxes by shifting profits overseas face being taxed on royalties on UK sales in a move dubbed the “Google tax”. A recent study found Amazon paid 11 times less corporation tax in the UK than British bookstores. Last year, Google agreed a deal with British tax authorities to pay £130m in back taxes and bear a greater tax burden in future. The push to claw more taxes from digital businesses came as part of the chancellor’s yearly assault on tax evasion and avoidance. HMRC is also benefiting from having the time it has to investigate all offshore tax non-compliance extended to 12 years, in the Treasury’s response to offshore exposés such as the Panama and Paradise Papers.

Source: The Guardian November 23, 2017 06:00 UTC