Sunday , April 11 2021

three European countries refuse to agree on the current form of text, unanimity is required



The ambitions of French Finance Minister Bruno Le Maire to meet with colleagues in the European Union around the new large digital retail tax are still not very effective. In fact, some countries are still suspicious and have not agreed. Other countries, including Italy, have announced their intention to continue their own bills on digital corporate taxes.

The Danish, Irish and Swedish ministers stated that they could not support the tax in their current form and question the future of the proposal because of the need for unanimity in the transfer of taxes to the EU. Ireland and the Scandinavian countries are still hostile, either by fear of losing some of their resources or for legal reasons and fear of intimidation in the EU partner countries.

According to the proposal, the bill is a 3% sales tax for digital companies with an annual turnover of more than 750 million euros globally and an annual income of more than 50 million euros per year in the EU.

For a transitional period, this tax would be expected to be a general agreement on the GAFA's taxation mechanism for the profits of the transfer of profits, for example to Luxembourg or Ireland.

It is not surprising that the French strongly defends this proposal because it comes from Germany. The mayor has given concessions to respondents who oppose this plan and want the EU to wait until the work of global taxation succeeds, rather than going through this European phase of transition. He said France would be in favor of postponing the date of entry into force of the 2021 tax. He also optimizes the finance ministers' debate in Brussels.


Bruno Le Maire and Giovanni Tria Brussels on 5 November

The debate shows that we are moving in the right direction, said the mayor during a debate on Tuesday. I just have to let the Paschal beer in Dublin at the pub and I think we can make our decision, "he said, referring to his Irish counterpart, Paschal Donoho.

It should be recalled that Germany, which originally supported France's proposal, was considered more wealthy, especially given the threats posed by US exports.

German Finance Minister Olaf Scholz proposed at the end of October a global corporate tax base and more restrictive measures to transfer funds to tax havens to prevent companies from taxing through these transfers and tax optimization. We need a global tax threshold that no state can count, said Olaf Scholz at Welt am Sonntag, and stressed the importance of taking action to combat tax evasion. Olaf Scholz says he has initiated an initiative aimed at helping states react to tax fraud in other countries based on the work of the OECD.

We need coordinated mechanisms to prevent tax evasion from tax havens, he said, adding that the EU lags behind in this area.

Many days later, France and Germany have not yet reached agreement on the taxation of the turnover of large digital stores, but Paris still hopes to reach an agreement at European level by the end of 2018. On Monday, the French Minister of Finance and finance.

Several countries already set their own taxes, which increases the risk of fragmentation of the internal market. Finance Minister Giovanni Tria said that the Italian tax will come into effect next year, unless there is a broader agreement so far. Spain and the United Kingdom have already announced their own taxes.

Conflict highlights deep disagreements between groups when EU governments are trying to find a balance to attract profitable companies and deal with people's dissatisfaction with companies that do not pay their fair share. Traditional tax systems have so far failed to get world-class business revenue, but to limit their physical presence, which encourages anger by dissatisfied readers after years of tired growth and low wage developments.

Source: Bloomberg

See also:

France: It raises the question of a sovereign SO when he has questioned the government of GAFAM throughout the country
South Korea wants to combat tax optimization by GAFA by leveraging commercial information that goes through local servers
With a market value of $ 1000 billion, Apple is falling in history and seems to be the most profitable GAFA member in the market
tax evasion: three Nordic countries oppose EU projects to tax GAFA, claiming it could harm the European economy
RGPD: Quadrature du Net and 12,000 Internet users complain to CNIL, attacking GAFAM class action


Source link