Diverted profit tax

Firstly, sorry for the low levels of blogging recently. I am working on a new site, waiting for some outside developers. Secondly I am working on completely new Revision Guides for the new economic syllabus coming out soon.

It meant I didn’t do much blogging around the general election – which is perhaps a blessing in disguise. It still annoys me it is so hard to separate fact from political spin (e.g. Government spending under Labour government)- but that’s life.

I do try to be ‘balanced’ – though I’m not sure how good a job I do…

I genuinely think George Osborne has been a bad chancellor. Everything seems motivated from a political standpoint, not an economic standpoint.

Having said that – I feel very relieved that at last I have found something that Osborne has done that seems a good policy.

Diverted profit tax

This is a scheme to put a punitive 25% tax on companies who are considered to be artificially routing profits overseas. A very good example is Amazon.com – making £5.3bn of sales in Britain but routing it through Luxembourg to avoid British tax.

It seems to be working with Amazon finally giving up their obvious tax avoidance. (Guardian article)

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