Apple could soon be taking home a little bit less money thanks to new tax policies in the United Kingdom. The British government has announced a crackdown on tax breaks for banks and tax avoidance by multinational firms, according to the BBC.
The new 25 percent tax is being imposed on profits generated by multinationals from economic activity in the U.K., which are then artificially shifted abroad. The new rules could help the government raise £5 billion over five years.
According to Chancellor George Osborne, “Some of the largest companies in the world, including those in the tech sector, use elaborate structures to avoid paying taxes.”
Apple, along with Google, Amazon, and Starbucks have been accused of moving money outside of where it was earned to avoid paying taxes. In 2013, the U.S. Congress held hearings on the company’s alleged practices of shifting its profits offshore to avoid taxes. To date, the U.S. government has done nothing to end the practice.
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