The Treasury is threatening digital companies such as Facebook and Google with a new tax, as it pushes for global agreement on a fairer system for ensuring digital businesses pay their way. The chancellor, Philip Hammond, is expected to use next month’s spring statement to announce the results of a consultation launched by the Treasury in November, on how to update the tax system to reflect the nature of online businesses. The financial secretary to the Treasury, Mel Stride, told the BBC on Thursday that digital companies should pay “fair” levels of tax. But if progress cannot be agreed at a global level, Britain would be prepared to unilaterally enter into various changes, Stride said. Facebook recently announced a shakeup in the way it pays tax worldwide, amid mounting public pressure over whether footloose multinationals make a fair contribution to society.

Source: The Guardian February 22, 2018 20:05 UTC