Tech giants may face tough new tax system

Tech giants could face sweeping new taxes in the UK as the Treasury is considering taking a share of their revenues, with politicians claiming the current level of payments to the Exchequer is not fair. Officials grappling with the plan – which would break the principle of levying tax on profit alone – have even considered defining the use of a search engine as “bartering”, as web users exchange their data for the company’s information and so this transaction could be subject to VAT, despite no cash changing hands.

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