Home / Software & Service News / France, Germany, Italy, and Spain want to tax tech giants on revenues, not just profits

France, Germany, Italy, and Spain want to tax tech giants on revenues, not just profits


(Reuters) — France, Germany, Italy and Spain want digital multinationals like Amazon and Google to be taxed in Europe based on their revenues, rather than only profits as now, their finance ministers said in a joint letter.

France is leading a push to clamp down on the taxation of such companies, but has found support from other countries also frustrated at the low tax they receive under current international rules.

Currently such companies are often taxed on profits booked by subsidiaries in low-tax countries like Ireland even though the revenue originated from other EU countries.

“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.

The letter, signed by French Finance Minister Bruno Le Maire, Wolfgang Schaeuble of Germany, Pier-Carlo Padoan of Italy and Luis de Guindos, was addressed to the EU’s Estonian presidency with the bloc’s executive Commission in copy.

They urged the Commission to come up with a solution creating an “equalization tax” on turnover that would bring taxation to the level of corporate tax in the country where the revenue was earned.

“The amounts raised would aim to reflect some of what these companies should be paying in terms of corporate tax,” the ministers said in the letter, first reported on by the Financial Times.

Le Maire, Schaeuble, Padoan and de Guindos of Spain said they wanted to present the issue to other EU counterparts at a Sept. 15-16 meeting in Tallinn.

The EU’s current Estonian presidency has scheduled a discussion at the meeting about the concept of “permanent establishment”, with the aim of making it possible to tax firms where they create value, not only where they have their tax residence.

France has stepped up pressure for EU tax rules after facing legal setbacks trying to obtain payments for taxes on activities in the country.

A French court ruled in July French court ruled that Google, now part of Alphabet Inc, was not liable to pay 1.1 billion euros ($1.3 billion) in back taxes because it had no “permanent establishment” in France and ran its operations there from Ireland.

Click Here For Original Source Of The Article

About Ms. A. C. Kennedy

Ms. A. C. Kennedy
My name is Ms A C Kennedy and I am a Health practitioner and Consultant by day and a serial blogger by night. I luv family, life and learning new things. I especially luv learning how to improve my business. I also luv helping and sharing my information with others. Don't forget to ask me anything!

Check Also

Windows 10 included password manager with huge security hole

There's a good reason why security analysts get nervous about bundled third-party software: it can introduce vulnerabilities that the companies can't control. And Microsoft, unfortunately, has learned that the hard way. Google researcher Tavis Ormandy discovered that a Windows 10 image came bundled with a third-party password manager, Keeper, which came with a glaring browser plugin flaw -- a malicious website could steal passwords. Ormandy's copy was an MSDN image meant for developers, but Reddit users noted that they received the vulnerable copy of Keeper after clean reinstalls of regular copies and even a brand new laptop.

A Microsoft spokesperson told Ars Technica that the Keeper team had patched the exploit (in response to Ormandy's private disclosure), so it shouldn't be an issue if your software is up to date. Also, you were only exposed if you enabled the plugin.

However, the very existence of the hole has still raised a concern: are Microsoft's security tests as thorough for third-party apps as its own software? The company has declined to comment, but that kind of screening may prove crucial if Microsoft is going to maintain the trust of Windows users. It doesn't matter how secure Microsoft's code is if a bundled app undermines everything.

Source: Monorail, Tavis Ormandy (Twitter)

css.php