Economy

European Union countries want tech giants to pay taxes wherever they create value

European Union countries want tech giants to pay taxes wherever they create value”

The letter, signed by French Finance Minister Bruno Le Maire and his counterparts Wolfgang Schaeuble of Germany, Pier-Carlo Padoan of Italy and Luis de Guindos of Spain, was addressed to the EU's Estonian presidency and the bloc's Executive Commission.

"We should no longer accept that these companies do business in Europe while paying minimal amounts of tax to our treasuries", the four ministers wrote in a letter seen by Reuters and Agence France-Presse last week. They insist that the issue is a question of "economic efficiency", as well as justice and sovereignty.

So far, they are only paying taxes where they are physically present. Accordingly, the ministers requested a new tax structure be implemented, an "equalization tax" as it was called, which would have the companies taxed on their turnover at a rate that reflected the corporate tax in the country where their revenue was earned. Various reports have surfaced online in the past few years about tech companies being investigated for tax avoidance in various European nations for taking advantage of this tax arrangement.

"It is urgent to close the gap in global tax rules in order to ensure the fair taxation of profits from businesses in the digitalised economy", said an European Union document seen by AFP, prepared for a meeting of finance ministers in Estonia on September 15.

The ministers want to put the issue on the table for an European Union meeting in Estonia (where the current presidency is located) on September 15th. Google recently dodged a tax bullet in France because its operations are based in Ireland, and it's clear that the countries want to eliminate that technicality going forward.

In July, Google successfully won a case in France against a €1.2 billion tax bill, as a court ruled the company had not abused tax loopholes to avoid paying tax.



Like this

Latest


11 September 2017
Fearless reporter illustrates the monstrous power of Hurricane Irma's winds
A storm chaser jeopardized his life when he stepped out of his auto and stood against the hurricane winds to measure its speed. More than 3.3 million homes and businesses across the USA state of Florida lost power as Hurricane Irma swept through it.

11 September 2017
Baby Named Storm Born as Hurricane Irma Approaches Miami
A Key West woman was forced to deliver her baby while trying to flee from Hurricane Irma as it battered the Florida coast. Emergency services were later able to reach the mum and she has been taken to hospital with her little girl.

11 September 2017
Here's Who China's Bitcoin Exchange Ban Reportedly Won't Affect
The people said that regulators will likely to have to tolerate noncommercial trading of virtual currencies. Officials said they don't plan to shut down cryptocurrency trading, but merely regulate it.

11 September 2017
Billionaire Branson rides out Irma
AN ANXIOUS father who has not heard from his "huge family" in Anguilla since Hurricane Irma hit has urged the British government to do more to help.

11 September 2017
Les onze vaccins qui seront obligatoires dès janvier prochain
Aujourd'hui , seuls 3 vaccins infantiles sont obligatoires en France: contre la diphtérie , le tétanos et la poliomyélite (DTP). Avant elle, la rougeole avait causé la mort de 10 enfants en France depuis 2008, selon le ministère.

11 September 2017
J&K: 2 Hizb militants killed in encounter with security forces
Local sources said that the slain militants include Dawood Ahmad Illahi of Hawora Kulgam and Sayar Ahmad Wani of Wanpora Kulgam. An over-ground worker (OGW) was arrested during the operation, said an official.

11 September 2017
Cost of energy from offshore wind halves
As part of reforms to its electricity market, Britain replaced direct subsidies for renewable power with a contracts-for-difference (CfD) system.

11 September 2017
Xiaomi launches an Apple MacBook Pro rival, meet the Mi Notebook Pro
For audio, the Mi Notebook Pro features Harman Infinity speakers, along with Dolby ATMOS support. Mi Notebook Pro packs a 60 Wh battery for long battery life and comes with quick charge support.

11 September 2017
Bigg Boss 11: When Salman Khan Offered Balcony Seat To Mouni Roy…
By the promo's end, Dabangg Khan establishes that the eleventh edition of " Bigg Boss " will make its appearance on October 1. In fact, Mouni is the only TV actor who frequented the sets of Bigg Boss 10 and shook a leg with Salman at the finale.

11 September 2017
Firewatch Developer No Longer Allowing PewDiePie To Stream Their Games
PewDiePie, real name Felix Kjellberg, dropped the "n-word" while playing the survival game " PlayerUnknown's Battlegrounds ". Kjellberg's stream of " Firewatch ", which Vanaman said had around 5.7 million views, has seemingly already been taken down.



Recommended