France, Germany move to save European Union digital tax proposal

France, Germany move to save European Union digital tax proposal

France, Germany move to save European Union digital tax proposal

Facebook logo picture illustration made in Zenica, Bosnia and Herzegovina.

The EU finance ministers have not reached agreement on the proposed digital tax on online services.

The idea, revealed to AFP by a European source, was formally proposed by Paris and Berlin to EU Finance Ministers meeting in Brussels to discuss the issue later yesterday.

Meanwhile, countries like Ireland, with its low taxes, have benefited from transnational digital giants funnelling their profits from other European Union states through them. France has held up the digital tax as an opportunity to show voters ahead of European Union elections in May that establishment parties are capable of action to make global corporations contribute a fair share to public coffers.

The tax has been championed by French president Emmanuel Macron as a way to show that governments are capable of taking action to rein in large tech companies, which are seen as paying minimal tax in Europe due to their use of accounting loopholes, ahead of Europe-wide elections in May of next year.

According to European Union sources, the two countries are declaring in a joint statement their "determination to introduce a fair and effective tax on large digital companies".

Your opinion is valuable.

The US Open Final: Who Will Make it?
The 34-year-old Swiss won the first two sets 6-4 and 7-5, forcing an injured and struggling Djokovic to retire in the third. If she’s at her best, then she’ll make it to the final and if she performs on the day the title will be hers.

The measure was aimed at big IT firms such as Google and Facebook.

US lawmaker Kevin Brady, chairman of the tax-writing Ways and Means Committee in the House of Representatives, welcomed the failure of the proposal, calling the tax a "revenue grab" aimed at an industry dominated by American firms.

"What matters for France is that there is a legally binding instrument that can be adopted as soon as possible", French Finance Minister Bruno Le Maire said as he arrived for talks with his euro zone counterparts on Monday. France and Germany said that the watered-down proposal doesn't prevent countries wishing to impose the levy on a broader revenue base to do so.

"Rather than pursuing measures like this that would result in double taxation", he said, "countries should continue working together through the OECD framework on the important global dialogue regarding the digital economy".

German Finance Minister Olaf Scholz said tax receipts generate by the proposed Franco-German tax would be small, noting a similar tax planned by Britain was expected to raise around 500 million pounds ($641 million).

The latest proposal is meant to come into force in January 2021, but only if the Organisation for Economic Co-Operation and Development (OECD) fails to reach a consensus on a global approach by then.

Would you like to get published on Standard Media websites?

Recommended News

  • More information about the Nokia 8.1 is revealed

    More information about the Nokia 8.1 is revealed

    As per the Nokia X7 of China, Nokia 8 .1 will run on Android 8.1 Oreo powered by an octa-core Qualcomm Snapdragon 710 SoC. Connectivity options on the Nokia 8 .1 include 4G VoLTE, Bluetooth 5.0, a 3.5mm headphone jack and a USB Type-C port.
    One Test to Diagnose Them All — Universal Cancer Test

    One Test to Diagnose Them All — Universal Cancer Test

    "Even for breast cancer , there are a dozen types, so we thought there would be different tests for different types of cancer". It spots tiny amounts of DNA floating through vessels that could only have come from tumors and not from healthy cells.
    Iran’s Rouhani threatens to cut off Gulf oil

    Iran’s Rouhani threatens to cut off Gulf oil

    He said the government would maintain subsidies on essential goods and increase public-sector wages and pensions by 20 per cent.
  • How to Upgrade Your Skills to MCSA: Windows Server 2016 Certification? ExamSnap Guide on Microsoft 70-743 Exam

    Depending on your behavior, it can be determined whether or not you are using exam dumps and if so, penalties will be imposed. As you can see the retake policy is a bit lenient, but it is still wise to make sure that you pass at the first attempt.
    Dow plunges nearly 800 points

    Dow plunges nearly 800 points

    The Dow Jones plunged nearly 800 points, while the S&P 500 was driven lower by financials, which shed nearly 4.4 per cent. Discount retail chain Dollar General slid 8.2 per cent to $102.54 after the company reported weak quarterly results.
    Facebook Drops From 1st to 7th for Best Place to Work

    Facebook Drops From 1st to 7th for Best Place to Work

    The company, although headquartered in Boston, has more than 90 locations in 50 countries. LinkedIn (No. 6), Lululemon (No. 9) and Southwest Airlines (No. 10) completed the top 10.
  • Bigg Boss 12 Day 79: BB School Bus Challenge Causes Chaos

    Bigg Boss 12 Day 79: BB School Bus Challenge Causes Chaos

    Somi tells him that she has a problem not because everyone is playing a game but because her trust has been betrayed. As the buzzer rang once again, Rohit removed Somi from the task and said he will play for himself at this stage.
    Tom Cruise's new mission: adjusting your television sets

    Tom Cruise's new mission: adjusting your television sets

    Different TV makers call it by different names, including Sony's MotionFlow , Samsung's Auto Motion Plus and LG's TruMotion . They continued to share the fact that Hollywood is working with TV manufacturers to make motion smoothing easier to turn off.
    Liberals adopt new rule to stop the revolving prime ministership

    Liberals adopt new rule to stop the revolving prime ministership

    They believe his ongoing interventions are further risking the Liberals' fortunes at both federal and state elections. Mr Kelly, a vocal conservative, was facing a preselection challenge from moderates in the federal seat of Hughes.
  • Spider-Man: Far From Home trailer release date announced

    Not only that but Spider-Man died in Avengers Infinity War and Avengers 4 will reveal how he's resurrected for Far From Home . Avengers 4 is released in United Kingdom cinemas on April 26, 2019 and will be followed by Spider-Man Far From Home in July.
    Nuggets’ Jamal Murray says Nikola Jokic does everything ‘except jump’

    Nuggets’ Jamal Murray says Nikola Jokic does everything ‘except jump’

    The Nuggets took 59-47 advantage into halftime, paced by 14 points, 10 assists and five rebounds from Jokic. Toronto still maintained the momentum though and tied the game at 94 with 4:40 remaining.
    76ers' Markelle Fultz diagnosed with nerve condition

    76ers' Markelle Fultz diagnosed with nerve condition

    Thoracic outlet syndrome involves compression or irritation in the thoracic outlet (area between lower neck and upper chest). However, Wojnarowski also reports that the Sixers are hoping he's only sidelined three-to-six weeks.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.