UK Details ‘Google Tax’ Plans

The British government detailed plans for a new 25 percent tax on profits of multinational technology and other companies it says are avoiding paying tax -- a move that has prompted complaints from business groups and warnings from tax specialists that it could conflict with international tax treaties.

The draft legislation said the tax would be levied on companies that operate in the UK but are deemed to be avoiding having a permanent establishment in the country to lower their tax bill, or companies that use offshore entities which lack economic substance to lower their tax liabilities in Britain. The tax will only relate to companies with UK revenues of more than £10 million ($15.7 million) per year.