Calls for digital taxation on internet giants
France, Germany, Italy and Spain want digital multinationals like Amazon and Google to be taxed in Europe based on their revenues, rather than only on their profits, their finance ministers said in a joint letter, reports Reuters.
“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. They urged the European Commission to come up with a solution creating an “equalisation tax” on turnover that would bring taxation to the level of corporate tax in the country where the revenue was earned. http://reut.rs/2wlubWr