Tax Research UK founder Richard Murphy says this will be the “easiest tax on Earth to pass on”, as the tech giants like Facebook, Google, and Twitter are “effectively monopoly suppliers”.
“The reality is those platforms are unique and they can therefore pass the cost on if someone wants to advertise with them,” he says.
This stems from the fact the tax is on revenue, instead of profit. “This is essentially a sales tax levied on top of VAT on these companies and what we know about this form of sales tax is that it’s passed straight onto the consumer,” Murphy says.
So it is possible for him to grasp tax incidence then.
Now all he’s got to do is apply the same corpus of knowledge to corporation tax….