Sunday Mirror (Northern Ireland)
Rishi raid on digital giants
‘Amazon Tax’ plan for firms’ big profits
RISHI Sunak plans a huge “Amazon Tax” for digital giants who have made vast profits in the pandemic.
The Chancellor, who hopes to strike an international deal by June when the UK hosts the G7 summit, will outline his proposals as he announces 30 changes during Tax Day on March 23.
Long-term tax consultations will emerge in part two of his Budget, which was split for the first time.
Mr Sunak is already talking to US Treasury Secretary Janet Yellen and fellow G7 finance ministers about how to extract more tax money from huge digital firms based offshore.
He said: “One of my priorities is to get international agreement on a new way to tax these companies. I spend a lot of time talking to finance minister colleagues around the world about it.”
Amazon UK paid £14.4million corporation tax, in theory 19% of profits, after revenue of £13.7billion in 2019.
Facebook’s business tax – on income topping £1billion – was £28.5million.
Google, worth £63billion worldwide, paid £44million on £225million of UK profits. There is no suggestion the three firms are acting illegally or not paying the taxes required of them by law.
Until now Mr Sunak’s hands have been tied, as tax on multinational profits is governed by treaties agreed between the 37 member countries of world trade group the OECD.
Many of the deals were thrashed out 60 years ago, long before the digital age.
All the Chancellor has been able to impose so far is a two per cent digital sales tax on turnover of social media and online sellers – doing more than £25million of trade in Britain.
Labour analysis of the Budget shows that he is slashing £64.5billion from public spending in the next five years.
But Paul Johnson, director of the Institute for Fiscal Studies, says Mr Sunak will find himself forced to increase spending on the NHS, education, courts, transport and social care.
He added: “His medium-term spending plans look implausibly low.”
NICOLAS Cage hopes he’s hit the jackpot as he weds for the fifth time, before partying with ex-wife No3.
The Con Air star, 57, and Riko Shibata, 26, wed in secret at a Las Vegas casino last month, with former Mrs Cage Alice Kim and their son Kal among guests.
Cage, whose last marriage to make-up artist Erika Koike lasted four days, said they were “very happy”.