London: The amount lost in Value Added Tax (VAT) on the sales of digital services is equivalent to the cost of staging the London Olympics, a report by a top telecoms and digital consultancy claimed Tuesday.
The report by Greenwich Consulting estimates that Britain is losing over £1.6 billion a year in VAT on digital services bought from suppliers based overseas, according to figures seen by the Guardian.
The study suggests Britain will lose £10 billion between 2008 and 2014, £1 billion more than the official cost of the 2012 Olympics.
Britain announced a campaign against “tax dodgers” and “cowboy advisers” on Monday to claw back £2 billion a year, as lawmakers alleged that multinationals such as Google and Amazon are avoiding huge tax bills.
Parliament’s public accounts committee on Monday released a report after it quizzed senior figures from coffee chain Starbucks, US online retailer Amazon and Internet search giant Google.
Margaret Hodge, who chairs the committee, said: “Global companies with huge operations in the UK generating significant amounts of income are getting away with paying little or no corporation tax here.
The report said multinational firms were using complex structures and exploiting tax laws to move offshore profits that were “clearly” generated within Britain.
Dear TNT Reader,
At The News Tribe, our mission is to bring you free, independent, and unbiased news and content that keeps you informed and empowered. We are committed to upholding the highest standards of journalism, as we understand that we are a platform for truth.
Apart from independent global news coverage, we also commit our unique focus on the Muslim world. In an age marked by the troubling rise of Islamophobia and widespread misrepresentation of Muslims in Western media, we strive to provide accurate and fair coverage.
But to continue doing so, we need your support. Even a small donation of 1$ can make a big difference. Your contribution will help us maintain the quality of our news and counteract the negative narratives that are so prevalent.
Please consider donating today to ensure we can keep delivering the news that matters. Together, we can make a positive impact on the world, and work towards a more inclusive, informed global society.
Donate Monthly Subscription Annual Subscription