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Thu Jul 11, 2019, 08:36 PM

France Passes Law Taxing Digital Giants In Defiance Of US Anger; UK Follows...


AFPJuly 11, 2019

Paris (AFP) - France's parliament on Thursday passed a law making it the first major economy to impose a tax on digital giants, defying a probe ordered by an angry US President Donald Trump that could trigger reprisal tariffs.

The new law aims at plugging a taxation gap that has seen some internet heavyweights paying next to nothing in countries where they make huge profits as their legal base is in smaller EU states.

The legislation -- dubbed the GAFA tax in an acronym for Google, Apple, Facebook and Amazon -- was passed by a simple show of hands in the Senate upper house after it was agreed by the National Assembly lower chamber earlier this month.

But the French move drew an angry response from the White House even before the legislation was passed, with Trump ordering an investigation unprecedented in the history of French-US relations.

The law will levy a 3.0 percent tax on revenues generated from services to French consumers by the largest tech firms.

The adoption of the law came as Britain unveiled draft legislation for a tax on digital giants, that would amount to 2.0 percent and reflect "the value derived from their UK users", the British government said.

Google, Apple and Facebook have their European headquarters in Ireland, where they pay some of the EU's lowest corporate tax rates despite earning the bulk of their European revenues in Britain, France and Germany.

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https://news.yahoo.com/france-passes-law-taxing-digital-giants-defiance-us-101353240.html

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Reply France Passes Law Taxing Digital Giants In Defiance Of US Anger; UK Follows... (Original post)
RCW2014 Jul 11 OP
Cold Warrior Jul 11 #1

Response to RCW2014 (Original post)

Thu Jul 11, 2019, 08:41 PM

1. Folks in the U.K., Germany, and France have long complained that the Tech giants

pay little or no taxes. The oft-repeated response is that they are within the law and those who have a problem with it should close the loopholes in the laws. Be careful what you wish for...

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