George Osborne has announced plans to raise more than £1bn over the next five years from a new “diverted profits” tax on multinationals but details were scanty and advisers said it was not clear how the levy would work.
The measure was unveiled by the chancellor yesterday as part of his Autumn Statement to “make sure that big multinational businesses pay their fair share”.
The move, widely dubbed the “Google tax”, was described by Mr Osborne as a crackdown on “some of the largest companies in the world, including those in the tech sector, [that] use elaborate structures to avoid paying taxes”.
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