UK lost out on £2bn in tax in 2021 as big tech shifted profits abroad, claim campaigners

The UK might have missed out on as much as £2bn in tax in 2021 from big tech companies shifting their profits elsewhere, according to an estimate by a group campaigning for greater tax transparency. Seven of the biggest US-headquartered tech companies, including Apple, Microsoft and Google owner Alphabet, are estimated to have paid £750m in UK corporation tax and the digital sales tax, compared with £2.8bn in estimated tax due had profits not been routed elsewhere, according to TaxWatch, a campaign group.
Big multinational companies often have complicated structures using different subsidiaries around the world. In many cases that makes it near impossible for observers to calculate how much tax they have paid in the UK, and whether the amounts paid align with the amount of activity in the UK.
To try to get around the lack of data, TaxWatch estimated how much UK tax these global groups would have paid if their British subsidiaries declared profits at the same rate as they declare them worldwide. There is no suggestion that the companies involved have evaded taxes illegally.

https://www.theguardian.com/business/2023/oct/16/uk-lost-out-on-2bn-in-tax-in-2021-as-big-tech-shifted-profits-abroad-claim-campaigners

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