The Tech Giants have been rightly criticised for not paying their share of taxes since they’re able to channel revenue around the world to low taxing countries.
The UK Government have a cunning plan, and they’re going to use withholding tax to save the day.
Withholding tax is a way that the government can claim tax from the company paying the income before the income is paid to the recipient. It is for non-resident earners, entertainers and sports stars who are resident in some other country. Effectively it means we get the tax before the income is paid and shunted off to a foreign country to be dealt with there.
Hence the tech-giant connection, taking a 20% slice from their earnings before they declare the income at the country that they’re based in.
It means the likes of Gareth Bale and Rory McIlroy are whacked on their winnings, and Brian May taxed on his Queen royalties.
