A spring forward on digital tax could see UK fall back | KPMG | UK
close
Share with your friends

A spring forward on digital tax could see UK fall back, warns KPMG

A spring forward on digital tax could see UK fall back

- Government must look to international solution to taxing the digital economy - Businesses are already struggling to get to grips with a complex tax environment

1000

Also on KPMG.com

Commenting ahead of the Spring Statement on Tuesday 13 March 2018, Melissa Geiger, head of international tax at KPMG, said:

“On Tuesday, we are likely to see an update and some interim options presented on the back of the government’s position paper for taxing the digital economy. This  enthusiasm to embrace solutions is encouraging but a short-term fix could significantly impact the UK’s ability to attract investment and risks seeding more confusion into a tax system already fraught with complexity. No matter how well intentioned those temporary fixes might be, the better answer is to tackle the digital economy in a collaborative way with international consensus.

“Tax authorities are frustrated by the inability to appropriately tax digital businesses and have a real appetite to secure revenues that adequately reflect how and where value arises. At the same time, we can’t forget that businesses are also still getting to grips with BEPS, struggling with complex UK reforms, such as losses and corporate interest restrictions, and responding to the impact of US tax reform.

“Now, with the UK at an economic crossroads as Brexit approaches, there is a strong case to hit the pause button on any significant changes or unilateral action to taxing the digital economy. First, we need to fully understand how any solutions might affect the UK’s competitiveness. Conclusions must be drawn and change must happen, but only with a solution that operates for the benefit of the wider economy.”

-Ends-

 

 

For media enquiries, please contact:


Alastair Henry, Citypress (on behalf of KPMG)
T: +44 (0)161 235 0320
E: alastair.henry@citypress.co.uk

Follow us on twitter: @kpmguk

KPMG Press Office: +44 (0)207 694 8773

About KPMG in the UK

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 14,500 partners and staff.  The UK firm recorded a revenue of £2.2 billion in the year ended 30 September 2017. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such.

 

 

Alastair Henry

Senior Account Director

Citypress

 

T: +44 (0)161 235 0320

M: +44 (0)7738 206 847

www.citypress.co.uk

 

PRWeek Awards Winner 2017

PRWeek Best Place to Work 2017

PRCA Ethical Champion 2017

 

Manchester | London | Birmingham | Edinburgh | Liverpool

 

City Press Services Limited, Union, 2-10 Albert Square, Manchester M2 6LW. Company Registered No 1924203 (England).

Connect with us

 

Request for proposal

 

Submit