Tax on the Internet giants
France and other countries propose Europe creates a tax for Google, Apple, Facebook and Amazon to put an end to fiscal support and taxation privileges
The end may be in sight for the tax privileges of the Internet giants, which practically pay no taxes in Europe. The French Economy Minister, Bruno Le Maire, has set this goal, which was part of President Emmanuel Macron’s electoral programme. During the EU Council of Finance Ministers (Ecofin), which was held on Friday and Saturday in Tallinn (Estonia), Le Maire proposed the creation of a European tax for Gafa -Google, Apple , Facebook and Amazon. “No one can accept that a small French company pay every last cent in taxes while the Internet giants pay almost nothing in France, although the French consume almost all their products,” he said. Ten countries support the initiative, including Germany, Italy, Spain and Estonia, which currently holds the rotating presidency of the EU.
Such a tax will not have the support of all EU countries but the aim is to subvert the current system where the Gafa companies are established in one country but gain income from consumers in all countries.
The problem now is to convince Luxembourg, the Netherlands and the Republic of Ireland to come to the party. At present they gain most from the system and as such, have the most to lose. The technique to skip the taxes is called “bleaching”. With their headquarters established in these countries, giants such as Apple have been granted advantageous tax privileges by paying only the local tax.
France wants to establish the new tax as quickly as possible, as early as this year and if not, in 2018. The Commission is also behind the idea as it could be an opportunity to end the practise of fiscal dumping as well.