IT CAN be horribly difficult to tax tech giants’ profits. They stash their intangible capital, such as intellectual property, in tax havens, booking only low profits elsewhere. There were screaming headlines in 2018 when it was uncovered that Amazon’s British subsidiary paid £1.7m in corporate tax despite revenues of $11.4bn. Rich countries have haggled over how to reform the global tax system, making progress in a number of areas, but not on taxing tech.
Some think France’s unilateral action is mis-timed. Several European countries, Britain among them, are mulling digital-services taxes. But all say they would prefer a global deal, which the OECD, a club of rich and middle-income countries, is trying to broker. France’s action, critics say, could now undermine that multilateral process. What is more, a world in which different countries imposed different digital tax regimes would be horribly messy.
France says that its digital tax will last only until there is a global agreement that will replace it. Furthermore, says Bruno Le Maire, France’s finance minister, tax is a “sovereign matter”.
First I've heard of this. Most Americans wish government would regulate these firms as the EU does. Is this article paid for?
When the West fight among themselves, WeChat, Baidu will move in to capitalize on this division.
They make tons of money but can't pay tax? Aren't they profit making companies like all else? Greedy!
they are being their regular self. The European Union has fiscal nonsense. It’s like being married and sharing all finances but having no control over your spouses spending. Now their economy is chocking a long, they look across the water to a booming one and here are the results
Europe never US ally when talking about money & controlling. 🤠
Because of EU's 'democratic socialism', no big new companies are being founded there. So, France has decided to fight American business and technological superiority and to make some serious money in the process. It is ironic, though, that Silicon Valley is as leftist as the EU.
Well its easy isn't it. Tax the other guys. What better way to squeeze out money that you haven't earned. This will set off the worst trade war ever. They will have 100% started it. Beyond dumb.
If those firms that create wealth without humanity are not taxed, what future has humanity?
To even think that taxing the profits of tech companies has something even remotely close to do with vindictiveness is plainly rubbish
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