Tax on Digital Companies

I completely understand people's concerns about digital companies not paying enough tax. In doing this, such companies not only fail to contribute fairly to fund our vital public services, but also undermine local shops and businesses. While we are lucky here in Fylde to have some thriving local high streets full of independent stores, we have also witnessed how they can suffer under pressure from online retailers. For the continued success of our local high streets, we must do more to ensure a level playing field.
 
The way in which businesses work is changing, which is why I am encouraged that the Government is reviewing the taxation of digital companies, to make sure all businesses pay their fair share. The UK Government is leading international efforts to reform the international rules around where profit is made and where it should be taxed.
 
Pending this global reform the Government is exploring potential interim measures, such as a tax on the revenue of certain digital businesses. This would be targeted at businesses which derive significant value from users, such as social media platforms and search engines. The Chancellor has been clear that if our country cannot reach an international agreement over taxation, we will go it alone with a Digital Services Tax of our own.
 
Additionally, this country has led the way through tough new rules to crack down on multinationals shifting their profits to lower tax jurisdictions. Around £8 billion has been returned by cracking down on large multinational enterprises that are avoiding paying the right amount of tax in the UK. The Diverted Profits Tax has been introduced at a rate of 25 per cent on multinationals that artificially divert profits out of the UK.
 
I appreciate there is more work to be done, but the Government has made great strides towards ensuring businesses pay their fair share and will continue to lead international efforts to reform the international rules.