U.K. proposes tax on U.S. tech giants
“It’s clearly not sustainable, or fair, that digital platform businesses can generate substantial value in the U.K. without paying tax here in respect of that business,” finance minister Philip Hammond said in his annual budget speech on Monday.
The tax will be designed to ensure established tech giants, rather than start-ups, shoulder the burden, Hammond told parliament, and “will apply to search engines; social media platforms; and online marketplaces. That is because the government considers these business models derive significant value from the participation of their users,” the proposal reads.
The tax will be paid by companies that generate at least 500 million pounds a year in global revenue – leaving companies like Facebook, Google and Amazon squarely in the cross hairs…