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.
The International Monetary Fund (IMF) has predicted US and UK economies will experience weaker-than-expected activity and expand more slowly this year than previously predicted.
The European Commission has confirmed that EU antitrust regulators are probing allegations of a cartel among a group of German carmakers, in an action that could result in bulky penalties for the companies.
Tesla Motors’ long-awaited Model 3 will be a “major test” for the Palo Alto-based electric car giant, according to industry analysts.
Hitting a potential milestone in the ongoing cleanup of one of the world’s worst atomic disasters, Japan has captured images of melted nuclear fuel inside the reactor 3 at the Fukushima No. 1 power plant.
Verizon Wireless has announced that it has been “optimizing” video apps on its mobile network, an admission made after several subscribers complained that their mobile data speeds were being throttled whenever they streamed videos on YouTube or Ne
The Federal Trade Commission (FTC) has confirmed that it has launched an investigation into allegations of tech giant Amazon’s misleading pricing discounts.