UK may levy 25% ‘Google Tax’ on tech giants’ profits

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Ahead of the national election in the UK this May, Chancellor George Osborne has proposed a ‘Google Tax’, a 25 percent tax on tech companies’ profits earned from their UK operations, reports The Sunday Times. The proposal is an attempt to curb these companies’ tactics to avoid taxes, usually accomplished by diverting profits offshore. The ‘diverted profits’ tax may be included in the UK Budget, and is slated to come into force next month. At 25 percent, the new tax is significantly higher than the standard 20 percent corporation tax rate — but it will be applied only to companies with annual…