The biggest tech stocks to watch as US government unveils sweeping rules
UK government officials announced today that they plan to propose sweeping new rules aimed at cracking down on tax avoidance, including a tax on Internet companies.
The US Treasury has said it wants to crack down on “the largest tax avoidance schemes in the world.”
The UK’s Financial Services Authority (FSA) is expected to launch a crackdown on so-called Internet-based tax avoidance in the UK this week, Reuters reports.
It says that if the proposed regulations are passed, firms could face fines of up to $1 billion or up to five years in prison.
The FSA said that the proposed measures would “encourage” investment in the Internet sector.
The regulator wants the companies to disclose their total profits and pay a 5% tax on the value of their shares.
The proposed rules would also force firms to disclose how much they paid in taxes on their profits, and would also require them to provide details of their customers, employees and suppliers.
The rules also aim to help address concerns that the United States is taking too long to crack the global tax avoidance trade.
In a statement to the Financial Times, the FSA said it was “concerned that the UK has not fully developed the tools needed to address this complex issue.”
The announcement comes after the UK announced earlier this month that it would join a group of countries that are working to curb tax avoidance.
In March, the Financial Services Commission said that it was launching a consultation on “a national approach to the global use of tax avoidance.”
UK regulators are also planning to release a new set of rules on the tax haven that are expected to come into force in the second half of 2019.
The Financial Conduct Authority is currently reviewing the proposed new rules.
According to Reuters, the UK’s Finance and Taxation Committee has also issued a consultation paper on “prevention of tax evasion.”