Thursday, 15 November, 2018

What you need to know about Britain’s "Digital Services Tax"

Chancellor of the Exchequer Philip Hammond prepares his speech in his office in Downing Street London ahead of his 2018 Budget announcement on Monday. PRESS ASSOCIATION After weeks of turmoil over Brexit Tory MPs will be looking to the Chancellor to raise party morale with his annual financial statement
Elsie Buchanan | 01 November, 2018, 13:25

"Fiscal Phil" has targeted online tech giants by announcing a new digital services tax in his Budget, promising to "deliver global corporate tax reform for the digital age".

Paul Johnson, director of the Institute for Fiscal Studies, said Mr Hammond had "got lucky" because tax revenues were better than expected.

The measure comes in response to growing backlash against US-headquartered tech giants that pay disproportionately small amounts of tax on United Kingdom profits.

The Chancellor also insisted that his Budget tax cuts and spending hikes were not meant to woo voters ahead of an early poll.

Tim Bennett, a partner at Killik & Co, said: "Setting Britain on a solo collision course with some of the world's biggest technology companies may be interpreted as either courageous or a little foolish".

But the prime minister rejected such talk, saying: "We are not preparing for another general election".

Mr Hammond stressed that the tax will be created to ensure established tech giants, rather than start-ups, shoulder the burden.

Saudi writer strangled: Turkish prosecutor
This was carried out as part of a premeditated plan, according to a statement by the chief prosecutor's office. Cengiz also told the memorial that she wishes she had entered the consulate instead of her fiance.


She said: 'We are ending austerity, we are bringing debt down, we are putting more money into our public services'.

Mr Mackay said: "With the UK Government's preferred approach to Brexit set to hit people's incomes in Scotland by £1,600 a head, the changes in this year's Budget do nothing to alleviate the impact Brexit will have". This will be a narrowly-targeted tax on the UK-generated revenues of specific digital platform business models.

"The new tax isn't even set to be implemented until 2020, at which time the tech giants will start to enjoy a 2% cut in their corporation tax rate". The tax would only apply to profitable companies, but could be abolished if members of the Organisation for Economic Co-operation and Development (OECD) can agree a formula for taxing internet giants.

The tax will be paid by companies that generate at least £500M in global revenues and will be introduced by April 2020.

Online companies like Amazon have always been criticised for not paying enough tax despite receiving millions of pounds' worth in Government contracts each year and enjoying a boom in profits. Usually it is harder for smaller firms to be tracked on their digital sales, and it is more likely for the smaller online firms to evade taxes.

The European Commission hopes to target companies whose worldwide revenue amounts of €750 million, or 3% of what they earn. We promised to do so and we have done it.' Experts had feared Mr Hammond would be forced to renege on his promise to increase income tax thresholds in a bid to cover the cost of the £20billion funding pledge to the NHS. In a column on The Drum, IAB chief executive Jon Mew argued that such a tax risked harming the UK's digital ad market.

Recommended

Wildlife populations fallen by 60pc since 1970, threatening civilization: WWF report Wildlife populations fallen by 60pc since 1970, threatening civilization: WWF report The African grey parrot population in south-west Ghana, which has decreased by 98 percent between 1992 and 2014. Also the hunting of endangered species for food production, plays a role.

Google Celebrates Halloween With First-Ever Multiplayer Google Doodle Google Celebrates Halloween With First-Ever Multiplayer Google Doodle To play, move around with arrow keys, collect little flame thingies, which add up behind you, creating a tail of sorts. In the game, you play a cute ghost whose objective is to collect "Spirit Flames ".

Hamilton wary of contact with Vettel at start in Mexico Hamilton wary of contact with Vettel at start in Mexico Going into the race, the Mercedes driver only needed to finish and ensure Sebastian Vettel did not win, to secure the title. Hamilton was unhappy on the supersoft tyres after pitting on lap 12, while Vettel flourished. "The vehicle is cursed ".

Hormone injections reduce risk for early menopause from breast cancer chemotherapy Hormone injections reduce risk for early menopause from breast cancer chemotherapy Dr Mr Beatrice Wiafe Addai said statistics available indicate that 58% of breast cancer patients are under the age of 50. The National Comprehensive Cancer Network Clinical Practice Guidelines for Oncology and the St.

Lampard proud but aggrieved after Chelsea return Lampard proud but aggrieved after Chelsea return Derby: Carson 6, Bogle 6, Keogh 5, Tomori 5, Malone 6, Huddlestone 8, Mount 7, Wilson 7, Waghorn 6, Marriott 7. It was a great opportunity to see them play in front of us and we took the opportunity.

Israel stages Ease of Doing Business turnaround Israel stages Ease of Doing Business turnaround The report, which was released on Wednesday, showed that the country took a step backwards from her 145th position a year ago . The latest reform initiatives included electronic submission of documents and upgrading of port infrastructure.

Tyler Perry is Done Playing Madea after 20 Years All in all, she appeared in a total of 11 movies including Boo! In addition, Perry will also kickoff a farewell stage play tour. Why Did I Get Married? For many, it will be hard to say goodbye to the character.

No Golden Tate For Patriots: Lions Trade Receiver To Eagles No Golden Tate For Patriots: Lions Trade Receiver To Eagles Tom Pelissero of NFL Network reports that the Lions have been fielding offers for wide receiver Golden Tate . The former Super Bowl champ didn't think he'd be among the players dealt at the deadline.

Prince Harry marks final day of Pacific tour by singing Maori song Prince Harry marks final day of Pacific tour by singing Maori song The Duke and Duchess of Sussex then headed to Auckland where they were joined by New Zealand Prime Minister Jacinda Ardern . Want more lifestyle and celebrity news? Or sign up to our daily newsletter here .

New WWE Championship Match Set For Crown Jewel New WWE Championship Match Set For Crown Jewel WWE Hall of Famer Hulk Hogan said in an interview last week with the Orlando Sentinel that he was "looking forward to going to Saudi Arabia with the WWE ".

Raptors’ Leonard continues hot start with 31 points in win over 76ers Raptors’ Leonard continues hot start with 31 points in win over 76ers The Raptors would stretch their lead to 17 before heading to the locker-room at halftime up 67-53. He poured in 31 points on just 19 shots, grabbed seven rebounds and dished out four assists.

Deaths of Fairfax County sisters in New York City remain mystery Deaths of Fairfax County sisters in New York City remain mystery According to the New York Post , NYPD Chief of Detectives Dermot Shea said on October 25, "They were not in the water that long". Problems arose for Rotana when she learned her whole family would have to return to Jeddah, Saudi Arabia .

Federer dominates Medvedev to reach 14th Basel final Federer dominates Medvedev to reach 14th Basel final Just hours after, though, Federer dropped a major retirement hint while speaking to the ATP World Tour following his 99 triumph. He needed 44 minutes to claim the opening set but was brought back to level-pegging as Zverev won the second in a tiebreaker.

Here’s What’s New in iOS 12.1, Available Today Here’s What’s New in iOS 12.1, Available Today Once a Portrait photo is saved in your library, this depth control feature can be accessed from Photos' edit mode. Additionally, the update turns on dual SIM support for the aforementioned models as well as the iPhone XR .

PM Modi dedicates Sardar Patel’s ‘Statue of Unity’ to nation PM Modi dedicates Sardar Patel’s ‘Statue of Unity’ to nation Local tribal leaders have also announced a boycott of the function citing destruction of natural resources due to the memorial. Buses will be available from the nearest Kevadiya Colony Bus Stand for Rs30 for adults and Re1 for children.