France Accuses US Of Avoiding Global Digital Tax Talks
The French finance minister accused the US of delaying talks to rewrite international digital tax rules for tech biggies like Google
France has accused the United States of avoiding international dialogue on updating cross border taxation for digital giants operating in Europe. French Finance Minister Bruno Le Maire urged the European Union (EU) to prepare its own EU Tax if talks with America continue to get delayed or fail.
140 countries are negotiating the first major rewrite of international tax rules to account for world-renowned online companies like Google and Amazon. While the blueprint for the deal is due from the Organization for Economic Cooperation and Development (OECD), the year-end deadline to deliver the same doesn’t look positive as of now.
Washington had called for a pause in the international talks early this year after suggesting that any deal should include a voluntary opt-in mechanism for US firms.
Rise of US tech organizations have irked finance ministers around the world as these firms often earn their huge revenues in various countries, but book their profits in lower tax countries like Ireland.
In the absence of a global deal, some European countries have followed France in creating their own national digital services tax, which in France’s case has made it a target of the Donald Trump government’s threats of retaliatory tax.
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