Google Tax Diverted

About Google Tax Diverted

The Diverted Profits Tax, commonly known as the Google Tax, was introduced in the UK in 2015. The tax targets companies that use artificial arrangements to shift profits offshore. The DPT charges a higher rate, 25 percent, than the standard corporation tax rate, currently 25 percent. The tax was nicknamed the Google Tax because Google was one of the companies it was designed to target. The DPT has been controversial. Critics argue it is too narrow and does not raise significant revenue. Proponents argue it has deterred profit shifting. The UK has also introduced a Digital Services Tax and has been a leading advocate for international tax reform through the OECD.