FinancialAdvice.co.uk Logo

Qualified advisers answering your
Financial Questions
call 0800 092 1245

Osborne to crack down on technology firms tax avoidance

30/09/2014

Chancellor George Osborne has vowed to crackdown on global technology companies who operate in the UK, but do not pay enough tax.

He accused some multinational technology firms of going to “extraordinary lengths” to avoid UK taxes, but claimed things will soon have to change.

Mr Osborne said that these technology companies are “welcome here in Britain with open arms”, but that “we expect those taxes to be paid.”

He continued to say: “We will put a stop to it. Low taxes, but low taxes that are paid.”

It is now expected that the chancellor will announce plans in his Autumn Statement this December, which should stop companies diverting their UK profits to offshore tax havens.

The move could help to raise hundreds of millions of pounds in taxes each year for the British government.

Speaking about the progress of the UK economy whilst he has been the chancellor, Mr Osborne said: "I believe it is perfectly possible for Britain to be the most prosperous major country on earth. The most prosperous, the most dynamic, the most creative."

Smoke and mirrors



Companies that have been accused of avoiding UK tax in the past include Google, who were questioned by the House of Commons Public Accounts Committee (PAC) just last year.

The PAC subsequently called Google a “devious” organisation, which is operating “smoke and mirrors”.

Simon Walker, director general of the Institute of Directors praised Osborne’s choice to target firms who are avoiding tax.

He said: "Tackling the perception that multinationals get a sweeter deal than the vast majority of businesses is the right thing to do, but can only be effective when combined with a radical simplification of the UK's sprawling tax code."

The move also attracted positive comments from John Cridland, director general of the CBI, who said: "Setting low and fair business taxes is the right goal for the UK. The CBI supports transparency on tax and will work with the Government to ensure that tax rules are fair on both sides. Companies will always want to operate within the rules."



Need financial advice?



If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.


Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:



Latest News

Blogs

Helpful new tax year facts that could affect you and your money


Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.


Read more

Useful Links

Popular Searches

Please Enter More Details

 
Enter More Details
Continue