US and France in showdown over digital tax

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US and France in showdown over digital tax
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US looks to penalise French goods as Paris stays firm on decision to make tech giants pay their fair share of taxes

France's digital service tax is designed to prevent tech companies from dodging taxes by putting headquarters in low-tax European countries.

US trade officials on Tuesday are due to hold a public hearing to allow individuals and companies to comment on the punitive measure. At the heart of the issue are complaints by governments that technology move profits to tax havens, such as Ireland and Luxembourg.

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