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Anorak | George Osborne Announces The Google Tax

George Osborne Announces The Google Tax

by | 30th, September 2014

George Osbourne, the Tory Chancellor, has noticed that large numbers of people are pissed off about the way in which Google pays near damn no tax in the UK. In the run up to the election he’s therefore announced that he’ll jolly well make them pay some more. The problem with this idea is that no one can quite work out how he’s going to manage this :

It is hard without more detail to know what impact the move to tackle tax avoidance by large US tech firms will have. The US and Irish governments have already taken some moves to tackle the so-called “double Irish” arrangement.

Treasury aides say that the move may raise a few hundred million pounds but more details will be given in the Chancellor’s Autumn Statement. Just as appealing to the chancellor as the money, though, will be the headline – Osborne introduces “Google Tax”.

Here’s what the problem is. From the announcement Osborne is saying that companies that use the Double Irish (no, don’t worry, it’s very boring) will be forced to pay more tax in the UK. But Osborne only has power over tax rates and tax laws in the UK. The Double Irish, as the name implies, comes under Irish tax law. So

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Posted: 30th, September 2014 | In: Money Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink