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The EU opened a new chapter in the battle prosecutor against the multinational technology USA

Brussels will present a ‘rate Google’ in the spring for taxing digital businesses

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The EU opened a new chapter in the battle prosecutor against the multinational technology USA

re is nothing more certain than death and taxes, said Benjamin Franklin. Except that subject is a multinational technology american: in that case death is apparently only safe, because those companies have developed an escapism tax extraordinary, which allows m to not pay taxes in any site. The Finance ministers of Union gave yesterday in Tallinn a first step to develop a new way of taxing companies such as Google, Amazon, Facebook or Apple, whom y accuse of doing business “paying minimum amounts on taxes.”

France has spearheaded a proposal that subscribe also Germany, Italy and Spain, to claim European Commission to design way of imposing a levy on turnover of technology companies to mid-2018. Up to 10 countries support this petition. And a score of ministers of Ecofin declared mselves in favor.

And yet Europe has shouted so many times already that comes wolf in fiscal matters seems to complicated for this plan to succeed. The usual suspects —half a dozen limbs prosecutors: United Kingdom, Ireland, Luxembourg, Cyprus, Malta and Czech Republic— do not support request. And nordic countries, Denmark and Sweden, show most skeptical. This time, at least, Nerlands and Austria —which tend to reject that kind of action— y are to please.

MORE INFORMATION
  • France, Germany, Italy and Spain launched a plan for giant digital pay more taxes
  • why Brussels punished by Google with a penalty historical?
  • Ireland used to avoid asking 13,000 million euros to Apple

But precedents are not encouraging. The EU takes months, with rate on financial transactions ( so-called Tobin tax) is sluggish. After cases such as Apple, Fiat, Starbucks and Amazon, Brussels already tried to put tie to multinational corporations that manage to pay to treasury rates lower than 1% with strategies scandalous but often legal. These proposals also are pending, for difficulty to advance in an area that tends to be essential unanimity.

OECD

In this case, ministers are in favour of imposing a tax transient sales tax, pending a global solution —a Tax— of hand of OECD. Governments admit that ir estates have failed to capture business of an industry where added value tends to be virtual rar than material, which makes it difficult to levy tax bases; digital companies, in addition, have successfully exploited gaps created by rules in international coordination shines by its absence.

opens a new chapter in battle in europe against technology of USA: Brussels estimates that tax advantages offered by Ireland allowed Apple to get rid of 13,000 million in taxes between 2003 and 2013, with rates of 0.005% a year. “There is a compelling need to act in short term to avoid that companies do not pay in any side,” said spaniard Luis de Guindos. The French Bruno Le Maire linked that escapism attorney with rise of populism, with citizens “outraged by situation.”

But ir own ministers warn of problems associated with that tax. Two in particular: act as a disincentive to digital economy in continent and push it to consumers of se products to buy outside of EU.

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