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
UK pub sector sobers up
Enterprise Inns, one of the U.K.'s largest pub companies, has today announced a 21% drop in annual profits and a warning for the year ahead. The UK pub sector has been under pressure for some time as the economic trouble continues to hit consumers in the pocket and sees them move away from "luxury" spending. The company has jettisoned 368 "underperforming pubs" over the last year raising £113 mil...
Read MoreGordon Brown calls for worldwide action against failing economies
Gordon Brown is this weekend attending the G20 Summit in New York where the powerhouses of the worldwide economy will meet to discuss the way forward, rescue deals and the future. Gordon Brown has already come out to demand that international action is implemented as soon as possible to avert what could well turn into a worldwide depression.
This comes on the same day that Germany a...
Is the UK government doing enough for UK industry?
Yesterday's revelation of 1,700 job losses at steel giant Corus together with more job losses at Lloyd's bank have prompted a number of questions regarding the UK government's role in protecting UK industry. While Lord Mandelson has grabbed the headlines with his attack on US food giant Kraft Foods, and its bid for UK chocolate maker Cadbury, where is the real help and where is the real financial...
Read MoreIs the worst to come for the UK high street?
The announcement of record losses by UK property giant British Land has prompted many analysts to revisit their forecasts for the UK retail sector over the coming weeks and months. There had been a general consensus forming regarding a potential recovery in the short to medium term but these figures, and accompanying statement, appear to have dashed any hopes of a short-term bounce. While British...
Read MoreSupermarket giant Sainsburys in crisis
07/08/2014 Supermarket giant Sainsburys has suffered its first fall in Christmas sales for more than a decade, as they admit the rest of the financial year will “remain challenging” for them. Sainsbury's said that like-for-like sales fell by 1.7% in the 14 weeks to January 3 excluding fuel. Total sales fell 0.4%, or 2.5% including fuel. Even though this is a better performance than exper...
Read More