VAT loopholes on digital sales cost UK more than £1.6bn annually
Tax loopholes on digital the sales of digital services will cost the UK government more than Olympics between 2008 and 2014, a new research has revealed.
Intensifying pressure on George Osborne to close VAT loopholes in his autumn statement, researcher at Greenwich Consulting estimated that the UK government is losing more than £1.6bn (_2bn) per year in VAT on digital services purchased by British consumers from multinational companies, like Amazon, which are headquartered overseas.
Between 2008 and 2014, the government will lose an estimated of £10 billion, more than the London Games that cost the government £9 billion.
When asked what the government was doing to tackle with tax avoidance, David Cameron's office said, "The issue for government is how we tackle that tax avoidance . What we have to do in government is make sure we are tackling that kind of aggressive tax avoidance."
The Prime Minister's office added that they were taking a number of steps to tackle the problem of tax avoidance, such as introducing a general anti-avoidance rule and seeking cooperation of other countries.
Uncut, an anti-tax avoidance pressure group, warned it would stage protests in Starbucks cafes. The protests, which will be against multinational companies like Starbucks, Google and Amazon, will involve tactics like creative civil disobedience.
Meanwhile, Chancellor George Osborne is widely expected to find more cash in his Wednesday's autumn statement to fund a drive by Her Majesty's Revenue & Customs to raise additional £10 billion in tax revenues.
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The European Union’s effort to increase tax on turnover of technology multinationals like Google and Amazon gained momentum as nearly one third of EU states are now in support of the plan, French Finance Minister Bruno Le Maire said on Friday.
Stock price of electric vehicle maker Tesla gained more than 3 per cent on Thursday, after the company’s founder and CEO Elon Musk confirmed plans to introduce an electric semi-truck.
Bitcoin suffered its steepest decline since January 2015 on Friday after a senior executive of China’s state-backed internet finance body said the controversial digital currency could pose risks because Bitcoins and other cryptocurrencies could be
Cupertino, California-based Apple Incorporated has quietly increased prices for the 256GB and 512GB models of its iPad Pro by $50, MacRumors reported.