Apple and Meta among 7 giants that dodged $2.4 billion in UK tax, think tank says
There’s a think tank called TaxWatch – its main purpose is to conduct forensic research and analysis on tax avoidance, tax policy, and tax law.
Its latest report mentions seven of the big tech names – Apple, Microsoft, Meta, Amazon, Adobe, Cisco, and Google owner Alphabet. Guess what? According to the TaxWatch report, they dodged $2.4 billion in UK taxes in 2021 (via 9to5Mac).
However, the report doesn’t wave the finger at the tech giants, but instead outlines the archaic British laws that enable tax avoidance of this scale to be possible and legal:
According to TNW, “If the profits had not been moved elsewhere, that figure could have quadrupled. TaxWatch estimates that the tax due would have been around £2.8bn ($3.3bn)”.
“The international tax rules were developed when trade was based on trading manufactured tangible goods, whereas we now have a services-based digital economy where data, algorithms, and AI are delivering much more profit”, said TaxWatch director Claire Ralph.
Its latest report mentions seven of the big tech names – Apple, Microsoft, Meta, Amazon, Adobe, Cisco, and Google owner Alphabet. Guess what? According to the TaxWatch report, they dodged $2.4 billion in UK taxes in 2021 (via 9to5Mac).
However, the report doesn’t wave the finger at the tech giants, but instead outlines the archaic British laws that enable tax avoidance of this scale to be possible and legal:
In today’s new report, we analyze seven large US-based technology groups and estimate they may have made almost £15bn of profit from UK customers in 2021 alone. However, international tax rules permit them to shift much of this profit out of the UK so that they were only liable for UK taxes of around £753m. Using complex tax driven structures, appears to have reduced their UK corporation tax from what would be around £2.8bn – a saving of roughly £2.0bn.
According to TNW, “If the profits had not been moved elsewhere, that figure could have quadrupled. TaxWatch estimates that the tax due would have been around £2.8bn ($3.3bn)”.
“The international tax rules were developed when trade was based on trading manufactured tangible goods, whereas we now have a services-based digital economy where data, algorithms, and AI are delivering much more profit”, said TaxWatch director Claire Ralph.
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