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    Britain Will Receive An Additional 25% Google Tax In 2015.

    2014/12/4 15:02:00 45

    BritainGoogle TaxAmazon

       Britain George Osborne, the chancellor of the exchequer, announced a new tax plan on Wednesday, preparing to levy a 25% Osborne tax (Google Tax) to fill the tax loopholes of multinational companies transferring profits to low tax areas. Although it is called " Google tax However, the law will not only affect Google poor students, but also have a universal impact on the entire technology industry, because Apple Corp, Amazon, Starbucks and many other technology brands have been using this way to avoid tax.

    According to the December 3rd report, the chancellor of the British government budget announced a new tax plan in December 3rd. Britain will receive an additional 25% Tax tax in 2015 (Google Tax) to fill the losses caused by the transfer of profits to low tax areas by multinationals. He said that once the measure is implemented, it will bring 1 billion pounds to the British government in the next 5 years.

    In recent years, including Amazon Google and Starbucks are all criticized because they set up their own headquarters in low tax areas, such as Luxemburg, thereby reducing their taxes and fees, but their revenues in the UK are very strong. According to the guardian of the British guardian, in 2012, it paid 3 million 200 thousand pounds of taxes and fees in the amount of British pound 320 million, but its total transaction volume actually amounted to 4 billion 200 million pounds. In October this year, BBC also reported that the European Commission would examine the tax treaties between Amazon and Luxemburg.

    The finance minister said that the new tax is known as the "transfer profit tax", which is mainly aimed at the profits created by multinational companies in the UK, which is different from the corporate income tax. If the tax is executed, it means that Amazon will no longer be competitive in price. Amazon has played an important role in this year's "black Friday" shopping carnival, cutting down product prices and offering a lot of promotional activities during the event.

    "Next year, the government will give a discount of 1500 to the sales tax of retailers and high street enterprises." He said.

    The British Retail Association (BRC) has called for the reform of the business tax system by 2017. Retailers under multi-channel (offline) retailers think they are in a weak position because they compete with pure online retailers because they have a physical store on high street and need to pay higher business tax than those online retailers who rent warehouses. Director general Helen Dickinson said: "we very much welcome this proposal to conduct a full review of our existing business tax. We need a reminder that can bring investment and job opportunities without punishing online retailers. After all, at present, over 1/4 of British taxes and fees comes from the retail industry. "

    It is understood that the chancellor of the exchequer George Osborne said the government will begin to levy the tax from April 2015, hoping to prevent the multinational companies from evading tax liability through non economic means. In Britain, the corporate tax rate is 21% and the new tax rate is 25%.

    But there are still some important problems to be solved, including how to implement the new tax and how to explain it.

    He called the new tax "transfer profit tax", mainly aiming at the profits created by multinational corporations in the UK. By definition, this new tax is not the same as corporate income tax. Only time will tell if this is effective, but at least for now, European legislatures and regulators believe that the practice of artificially transferring profits must end.

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