THE SO-CALLED GOOGLE TAX is “too complex, too vague and too soon”, according to the Institute of Directors.
The diverted profits tax will apply a 25% levy to profits generated in the UK by multinational businesses when they seek to shift them abroad.
IoD head of taxation Stephen Herring (pictured) said the law “represents a dramatic breach of the government’s own road map on tax, and we can only conclude that short-term political pressure has given the government the confidence to ride roughshod over its own rules.”
A Treasury spokesman said: “We’re absolutely clear that multinational companies that do business in the UK should pay their fair share of tax, which is why we’re introducing a 25% tax on profits generated by multinationals here which they then shift out of the country. It’s estimated that this will generate over £1.3bn in additional revenues.
“The government’s message has been consistent and clear: low taxes, but taxes that will be paid.”