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The European Union has described the US decision to suspend OECD-led discussions on digital taxation as a ’provocation’, reports the Financial Times. The US had described the talks as having reached an ‘impasse’, and announced an investigation into digital tax measures in the UK, Spain, Italy and other countries which could allow the US to impose import tariffs. France had suspended its digital tax pending the OECD discussions, but suggested it could be re-imposed if there was no agreement this year. The EU economy commissioner, Paulo Gentiloni, reiterated that the commission was seeking a ‘global solution’ while suggesting that the EU was prepared to advance its own proposals.
EU to pursue digital tax plans after suspension of OECD talks. US responds with investigation into ‘unfair trade practices’
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