UK to close loopholes with 'Google tax' initiative

The British Chancellor is set to close a number of loopholes used by Google, Amazon and other multinationals who have headquarters in Ireland.

The Sunday Times reports that George Osborne will flesh out his plans to prevent big companies dodging the taxman by routing profits generated in Britain offshore.

Known as the 'Google tax' the new measures in next week's UK budget will hit companies with a penal tax rate (25%) if they are judged to have shifted cash overseas with a view to sidestepping HM Revenue and Customs.

The 'diverted profits' tax, which is set to come into force next month, will be levied at 25%, compared with the standard 20% corporation tax rate.

Mr Osborne is also expected to force mulitnationals to dsiclose revenue and profit figures on a country by country basis.