UK Chancellor George Osborne today confirmed that a new tax dubbed the “Google tax” — because of its aim at tech companies that divert profits made in the UK — will come into effect next month, from April 1. He also pledged £600 million ($880 million) to improving broadband in the country.
The 25% Google tax is part of a wider aim of raising some £3.1 billion ($4.5 billion) over the next five years from those companies who have avoided paying taxes up to now. As was widely expected, the tax was confirmed as part of the Chancellor’s latest budget, delivered today.
“Let the message go out that our toleration for those who will not pay their taxes will now come to an end,” Osborne told Parliament. This is the last budget — which sets out UK spending, taxing and other government financial targets — before the next national election this May.
He noted that some…
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