Budget 2017: Tax avoidance - all the changes explained
CHANCELLOR Philip Hammond has announced his 2017 Budget where he unveiled a fresh drive to clamp down on internet tax dodges.
Hammond reveals crackdown on tech giants' tax avoidance
Mr Hammond expects to raise more than £200million a year from multinational digital firms who formally site vital parts of their operations in tax havens and lease them out to branches in other countries.
From April 2018 they will pay income tax on royalties they pay their tax haven hosts in respect of UK sales, in what sources said was an “innovative and novel” approach by the Treasury.
In a move to tackle online VAT fraud which costs taxpayers £1.2billion a year, online market place sites like eBay will be made jointly liable for the unpaid VAT of all traders who sell goods on their sites, not just overseas retailers.
Mr Hammond expects to raise more than £200million a year from multinational digital firms
The Government plans further work on what digital companies can do to ensure their users comply with tax laws.
It will also seek international deals to ensure online businesses pay proper taxes where they make their profits, even if their HQs are elsewhere.
Meanwhile, HMRC will get millions extra funding for staff.